Two words were all over the investment media yesterday: China and Google.
Yesterday Google’s founders announced the new parent company for Google, Alphabet, and the new CEO of Google, Indian-born US resident, previous VP Sundar Pichai.
From the early minutes of the Alphabet announcement, the word “Alphabet” has gone viral, so much that, investors went crazy on Google stocks, pushing stock prices from $633 to $670 zone.
Meanwhile China did their trick and devaluated their Remimbi in an effort to bring the Chinese economy back on its feet, but I am not going to talk about Chinese Devaluation now, but the Chinese Alphabet Ban. Traditionally China is known for banning social media channels’ operations within its borders and most definitely they do not allow Google to operate in China. Yes, they kept their word. China Blocked Google’s Alphabet domain in less than 24 hours of its announcement.
The country has probably the most sophisticated online censorship infrastructure and guideline in the world, which is called as the ‘Great Firewall’. Although you might be surprised, you should not be. Google withdrew from Chinese search engine operations and China as a whole market back in 2010 due to censorship disagreement with the Chinese government and the official Beijing decided to block Google and google products, last one being Google’s widely used Gmail service last year and now the ABC.XYZ.
Time to invest in Google?!
ABC.XYZ states: – As Sergey and I wrote in the original founders letter 11 years ago, “Google is not a conventional company. We do not intend to become one.”
In an official blog post, former Google CEO Larry Page claimed that the major restructuring is to make “things cleaner and more accountable,” and this way the company will be able to allocate its resources (human and capital) on the right direction.
We can also sense that Google is up to something now. They are signaling about the health sector, technology and transportation.
Taking the word from Mr. Larry Page, we can expect to see Google’s Alphabet giving the Google shares a boost.