Alphabet’s Google to Commission Three Subsea Cables in 2019
Alphabet Inc. GOOGL division Google recently announced that it will be commissioning three new intercontinental cables – Curie, Havfrue and the Hong Kong-Guam Cable system (HK-G) – in 2019.
Per Silicon Valley Business Journal report, Google currently has four submarine cables online and another seven are being developed. These subsea cables help in improving latency and ramp up the speed of data transfer.
Google also announced expansion of its cloud platform in five new regions – the Netherlands, Montreal, Los Angeles, Finland and Hong Kong – that will come online by the end of this year.
Subsea Cables Expand Google’s Reach
Of the three newly announced cables, Curie will be completely Google’s creation while Havfrue and HK-G will be developed with partners.
Curie will be a 6,200-mile long cable that will connect Los Angeles and Chile. With Curie, Google will become the first non-telecom company to have a private intercontinental cable of its own. After its deployment, Curie will become the largest single data pipe of Chile and serve users across Latin America.
Havfrue will be a 4,500-mile cable connecting the east coast of the United States with Ireland and Denmark, while HK-G will be a 2,400-mile cable between Hong Kong and Guam.
Expanding Infrastructure Boosts Position
According to Google, its cloud network has more than 100 points of presence and over 7,500 edge caching nodes. The new regions along with the commissioned subsea cables will expand Google network’s footprint across the globe. The company also has a strong clientele that includes the likes of PayPal.
Per TechCrunch, which quoted Synergy Research Group data, Amazon Web Services (AWS) increased its cloud computing market share in the third-quarter of 2017, aggressively followed by Microsoft, Google and Alibaba.
Notably, shares of Alphabet have gained 36.4% in the past 12 months, outperforming the 25.7% rally of the industry it belongs to.
Zacks Rank & Stock to Consider
Alphabet has a Zacks Rank #3 (Hold).
The Trade Desk TTD is a better-ranked stock in the same space, sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Trade Desk has a long-term expected earnings growth rate of 25%.
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