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  • 04.19.16

Will Alphabet’s Q1 earnings show that its big bets are finally paying off?

On Thursday, the company formerly known as Google will report its earnings, the second time it has done so with specific breakouts on each of its many different divisions. Back in February, Google’s core business still made up the vast majority–99.3%–of the larger company’s revenue. We’ll be very curious to see if, this time around, the tech giant’s “other bets”–Nest, Calico, Google Ventures, Google X, Verily, and Google Capital–can produce more than 0.7% of total revenues.

For a brief moment in time after Alphabet’s Q4 earnings, it surpassed Apple as the world’s most-valuable company. Today, Alphabet’s market cap is nearly $70 billion below that of Apple, meaning it’s unlikely to recapture that crown. Analysts are predicting that YouTube and Google’s mobile businesses will be the “key drivers of strength” for the company going forward. That makes sense, given that, for example, more than half of all Google searches are now done on mobile devices, and because more than a billion people use YouTube regularly.

In February, Google CEO Sundar Pichai noted that the next big drivers of the company’s growth will be machine learning and artificial intelligence. We’ll be watching to see if there’s anything new to report on that front, as well as whether Google has made further inroads into virtual reality.DT