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Google Inks Deal With Cuba to Improve Internet Service
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Alphabet Inc.'s (GOOGL - Free Report) Google is moving full steam ahead with its objective to improve Internet connectivity across the world.
Internet search giant recently signed an agreement with Cuba’s state telecommunications company, granting the Cuban users a speedy access to the Google Global Cache network.
Per the deal, Google will place computer servers on the Cuban island which will store content from sites like Gmail and YouTube, allowing it to be delivered more quickly to Cuban users. This initiative will help Google to speed up its services in the island, enabling the company to sell more ads in the coming days.
Also, shares of Alphabet have been steadily treading higher on a year-to-date basis. The stock has returned 4.04% compared with the Zacks Internet Services industry’s gain of 3.63%.
Why Cuba?
Cuba is predominantly one of the world’s most isolated nations with a population of around 11.2 million. At present, less than 10% of the inhabitants have free access to global Internet connection through government institutions, high-end hotels and the black market.
However, according to the U.S. Chamber of Commerce, mobile phones, Wi-Fi hotspots and broadband connections to homes are all increasing rapidly in Cuba. Notably, approximately 150,000 people accessed the internet daily last year, more than double the year ago.
Given Cuba’s growth potential and the signs of spreading internet use in the island, Google is exploring expansion options here to generate more online customers.
Outlook
Google has been exploring new areas of business in the last few years as its core advertising business is up against increasing competition. Internet access is a pet area and the company has several initiatives targeted at this. Some of its other efforts include high-altitude hot-air balloons called Project Loon, satellites and solar-powered drones.
As a vast portion of the global population still remains to be connected, the technology giant has been offering more affordable wireless data plans and slashing prices to ensure that its services such as Gmail and YouTube can be easily accessed, thereby leading to the expansion of its user base and driving its advertising revenues.
A Google spokesman said “This deal allows Cubans to use our technology to reduce latency by caching some of our most popular high bandwidth content like YouTube videos at a local level.”
Cognex Corporation delivered a positive earnings surprise of 24.92% in the trailing four quarters.
Itron, Inc. delivered a positive earnings surprise of 30.55%, on average, in the trailing four quarters.
Fortive Corporation delivered a positive earnings surprise of 8.42% in the trailing four quarters.
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Google Inks Deal With Cuba to Improve Internet Service
Alphabet Inc.'s (GOOGL - Free Report) Google is moving full steam ahead with its objective to improve Internet connectivity across the world.
Internet search giant recently signed an agreement with Cuba’s state telecommunications company, granting the Cuban users a speedy access to the Google Global Cache network.
Per the deal, Google will place computer servers on the Cuban island which will store content from sites like Gmail and YouTube, allowing it to be delivered more quickly to Cuban users. This initiative will help Google to speed up its services in the island, enabling the company to sell more ads in the coming days.
Also, shares of Alphabet have been steadily treading higher on a year-to-date basis. The stock has returned 4.04% compared with the Zacks Internet Services industry’s gain of 3.63%.
Why Cuba?
Cuba is predominantly one of the world’s most isolated nations with a population of around 11.2 million. At present, less than 10% of the inhabitants have free access to global Internet connection through government institutions, high-end hotels and the black market.
However, according to the U.S. Chamber of Commerce, mobile phones, Wi-Fi hotspots and broadband connections to homes are all increasing rapidly in Cuba. Notably, approximately 150,000 people accessed the internet daily last year, more than double the year ago.
Given Cuba’s growth potential and the signs of spreading internet use in the island, Google is exploring expansion options here to generate more online customers.
Outlook
Google has been exploring new areas of business in the last few years as its core advertising business is up against increasing competition. Internet access is a pet area and the company has several initiatives targeted at this. Some of its other efforts include high-altitude hot-air balloons called Project Loon, satellites and solar-powered drones.
As a vast portion of the global population still remains to be connected, the technology giant has been offering more affordable wireless data plans and slashing prices to ensure that its services such as Gmail and YouTube can be easily accessed, thereby leading to the expansion of its user base and driving its advertising revenues.
A Google spokesman said “This deal allows Cubans to use our technology to reduce latency by caching some of our most popular high bandwidth content like YouTube videos at a local level.”
ALPHABET INC-A Price and Consensus
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Zacks Rank & Stocks to Consider
Currently, Google has a Zacks Rank #3 (Hold). Some better-ranked stocks in the industry are Cognex Corporation (CGNX - Free Report) and Itron, Inc. (ITRI - Free Report) , sporting a Zacks Rank #1 (Strong Buy), and Fortive Corporation (FTV - Free Report) , carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Cognex Corporation delivered a positive earnings surprise of 24.92% in the trailing four quarters.
Itron, Inc. delivered a positive earnings surprise of 30.55%, on average, in the trailing four quarters.
Fortive Corporation delivered a positive earnings surprise of 8.42% in the trailing four quarters.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>