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Alphabet's Google Search Results to Improve From Tenor Buyout
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Alphabet Inc.’s (GOOGL - Free Report) division Google is set to acquire Tenor — a GIF search platform for Android, iOS and desktop. The deal will allow the company to incorporate Tenor’s GIFs into its own search platform.
Google will deploy the GIFs on Google Images and its virtual keyboard, Gboard, which will enhance the search results of the platform. Google Images are used by people all over the world to gather information. The latest addition of GIFs will throw more light on the topic.
We believe the deal bodes well for the company, given the increasing usage of GIFs across the world. Hence, Google’s search revenues are likely to boost with the latest move.
Tenor has a vast library of GIF, which attracts almost 300 million people to its search platform and experiences more than 12 billion searches every month. Per the deal, Tenor will continue to operate independently post the acquisition.
Coming to the price performance, shares of Alphabet have returned 17.6% over a year, outperforming the industry’s gain of 7%.
Emerging Trend of GIF to Benefit
The deal will be beneficial for the company as Tenor has a partnership with messenger platforms like Facebook where millions of GIFs are shared every day.
Millions of GIFs are shared by mobile users either via their personal messaging or via social media platforms like Facebook as they are considered to be better modes of expression. Notably, Tenor is a Facebook partner.
Further, advertisers prefer sponsored GIFs and try to make their ad GIF oriented as it helps to throw more light on a topic. Tenor is already into this advertisement business and Google earns a major portion of its revenues from this business.
Last quarter, Google generated $27.2 million of ad revenues and witnessed 28.8% and 12.6% year-over-year growth in search revenues generated from the company’s own sites and partner sites (accounting for 69% and 15% of the total revenues), respectively.
Additionally, Google is likely to improve its competitive position against Microsoft’s Bing, a search engine, which had added GIFs to its image gallery in late 2014.
Long-term earnings growth rate for Match Group and Akamai Technologies is pegged at 12.5% and 12.8%, respectively.
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Image: Bigstock
Alphabet's Google Search Results to Improve From Tenor Buyout
Alphabet Inc.’s (GOOGL - Free Report) division Google is set to acquire Tenor — a GIF search platform for Android, iOS and desktop. The deal will allow the company to incorporate Tenor’s GIFs into its own search platform.
Google will deploy the GIFs on Google Images and its virtual keyboard, Gboard, which will enhance the search results of the platform. Google Images are used by people all over the world to gather information. The latest addition of GIFs will throw more light on the topic.
We believe the deal bodes well for the company, given the increasing usage of GIFs across the world. Hence, Google’s search revenues are likely to boost with the latest move.
Tenor has a vast library of GIF, which attracts almost 300 million people to its search platform and experiences more than 12 billion searches every month. Per the deal, Tenor will continue to operate independently post the acquisition.
Coming to the price performance, shares of Alphabet have returned 17.6% over a year, outperforming the industry’s gain of 7%.
Emerging Trend of GIF to Benefit
The deal will be beneficial for the company as Tenor has a partnership with messenger platforms like Facebook where millions of GIFs are shared every day.
Millions of GIFs are shared by mobile users either via their personal messaging or via social media platforms like Facebook as they are considered to be better modes of expression. Notably, Tenor is a Facebook partner.
Further, advertisers prefer sponsored GIFs and try to make their ad GIF oriented as it helps to throw more light on a topic. Tenor is already into this advertisement business and Google earns a major portion of its revenues from this business.
Last quarter, Google generated $27.2 million of ad revenues and witnessed 28.8% and 12.6% year-over-year growth in search revenues generated from the company’s own sites and partner sites (accounting for 69% and 15% of the total revenues), respectively.
Additionally, Google is likely to improve its competitive position against Microsoft’s Bing, a search engine, which had added GIFs to its image gallery in late 2014.
Alphabet Inc. Revenue (TTM)
Alphabet Inc. Revenue (TTM) | Alphabet Inc. Quote
Zacks Rank & Stocks to Consider
Alphabet carries a Zacks Rank #3 (Hold).
Investors interested in the broader technology sector can consider Match Group (MTCH - Free Report) and Akamai Technologies (AKAM - Free Report) . While Match Group sports a Zacks Rank #1 (Strong Buy), Akamai Technologies carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for Match Group and Akamai Technologies is pegged at 12.5% and 12.8%, respectively.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>