Google Inc (NASDAQ:GOOGL) is famous for tapping into the research projects based on its long-term investments and development. The company has several research projects in the health, drones, biometrics and wearable sectors. But the search engine giant is now trying to focus more on the projects conducted by its Advanced Technology and Projects department, and thinking to shut down Google Inc (NASDAQ:GOOGL) Glass and Google Inc (NASDAQ:GOOGL) Drones projects, an article on WSJ claimed.
Experts think that Google Inc (NASDAQ:GOOGL) is overspending on its research and development domain. Last year, the company’s R&D investment got a rise of 38% and touched $9.8 billion, crossing the yearly revenue increase of 19%. This creates a ripple in the investors of Google Inc (NASDAQ:GOOGL), who are more result oriented and want the tech giant to execute on the existing projects rather than spending billions on projects which don’t have an end date.
The source quoted an expert, who think that Google Inc (NASDAQ:GOOGL) project are deteriorating in terms of results and execution. The company will have to elevate its implantation strategies to cheer up angry investors.
Advanced mobile technologies group is the answer from Google. It is a research group which is defying the conventional Google Inc (NASDAQ:GOOGL) research norms. Every project under this department has a hard end date of two years. After two years, the project is finished and the experts are either assigned new tasks or sent to their normal departments. Google Inc (NASDAQ:GOOGL) is likely to make some breakthroughs in mobile, mapping, 3D, health with this strategy.
David Tepper’s Appaloosa Management Lp owns around 600,000 Google Inc (NASDAQ:GOOGL) shares.