Google drops plan to offer bank accounts

  • Alphabet (GOOG, GOOGL) is backing off from ambitious plans to offer bank accounts to its users, the WSJ reports.
  • The tech giant has looked to move into personal banking for a couple of years, and a relaunched version of the Alphabet Pay app last November offered users the chance to open "Plex" accounts in partnership with Citigroup (C) and Stanford Federal Credit Union. It planned to add 11 new partners this year.
  • The accounts would be branded both by Alphabet and the banks, sync with Alphabet Pay and offer users data on spending and savings.
  • But the company missed a number of deadlines and saw its internal champion for the project exit in April, the WSJ notes.
  • Alphabet instead will now focus on 'delivering digital enablement for banks and other financial services providers rather than us serving as the provider of these services."
  • And Citigroup says those on the Plex waiting list will be pitched with other accounts, and Citi will look for other ways to work with Alphabet in the future.

    Over the current book year the company from Mountain View's total revenue could be around 250.72 billion USD (consensus estimates). This is hugely more than 2021's revenue of 182.53 billion USD.

    Historical revenues and results Alphabet plus estimates 2021


    The analysts expect for 2021 a net profit of 68.73 billion USD. The majority of the analysts expects for this year a profit per share of 100.91 USD. Based on this the price/earnings-ratio is 27.7.

    For this year analysts don't expect the company to pay a dividend. The average dividend yield of the internet companies equals a low 1.45 percent.

    Latest estimates around 3300 USD

    Goldman Sachs , KBC Securities and Credit Suisse recently provided recommendations for the stock.

    Alphabet 's market capitalization is around 838.23 billion USD. 85

    On Friday the stock closed at 2795.71 USD.

    Historical stock prices Alphabet2007-2021

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