Off To The Internet Graveyard: Google's Latest Attempt At A Social Network Is Shutting Down This Month
Portfolio Pulse from Rounak Jain
Alphabet Inc.'s Google is shutting down its experimental social network, Keen, launched in 2020 under its Area 120 incubator. Despite its innovative use of machine learning for content recommendations, Keen hasn't been updated since December 2021 and will close on March 24, with all user data being deleted. This follows a pattern of project closures and layoffs within Google, including over 1,000 staff in non-hardware teams.
March 15, 2024 | 1:43 pm
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NEUTRAL IMPACT
Alphabet Inc.'s decision to shut down Keen may reflect on its willingness to cut losses on non-performing projects, potentially affecting investor sentiment.
The shutdown of Keen is part of Alphabet Inc.'s broader strategy to terminate non-performing projects and lay off staff in non-core areas. While this could indicate efficient resource allocation, the impact on the stock is likely neutral in the short term as investors may have anticipated such moves in a company's lifecycle. The decision aligns with Alphabet's pattern of project closures and could be seen as a positive sign of focusing on more profitable ventures.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 80
NEUTRAL IMPACT
The closure of Keen and recent layoffs indicate Alphabet Inc.'s strategic adjustments, which could influence investor perspectives on company efficiency and future growth.
Similar to GOOG, the shutdown of Keen and the pattern of project terminations and layoffs under Alphabet Inc. reflect on the company's strategic decision-making. This move might be interpreted by investors as a sign of Alphabet's commitment to streamlining operations and focusing on core areas of growth. The short-term impact on GOOGL stock is likely neutral, as the market may view these actions as part of normal business adjustments.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 80