) recently announced the launch of a healthcare company, Calico,
one of its many investments in areas outside its core Internet
search business. This ambitious venture will focus on aging and
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Calico will be led by Arthur Levinson, ex-Google board member and
) chairman. Google did not provide specific details about the
project, stating that it is still in a nascent stage.
Google has invested in many potentially promising projects, such
as driverless cars and wearable computers called Google Glass.
Most of its ventures have revolved around its familiar territory
of search, software and hardware. However, not all investments
have yielded good results. One of its earlier ventures, Google
Health, which aimed at developing a system for storing digital
medical records was shut down soon after launch.
Though Google did not disclose the amount of capital it has
invested in the project, close sources have said that the amount
was significant, while management stated that it was not huge
compared to its annual turnover (roughly $50 billion last year).
These investments have not distracted management in the past and
the core business continues to grow very strongly. Therefore,
this investment should not either.
Google recorded a profit of $3.23 billion or $9.54 a share in the
second quarter of 2013, up from $2.79 billion or $8.42 a share in
the year-ago period. Total revenue grew to $14.11 billion, up
about 19% year over year.
Currently, Google Inc has a Zacks Rank #3 (Hold). Investors can
), both of which carry a Zacks Rank # 2 (Buy)