Alphabet Inc.’s (GOOG) Android Operating System Remains on Just 0.5% of Google Phones 3-Months After Release

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This might become a major problem for Alphabet Inc.’s (NASDAQ:GOOG) Android phones if something isn’t resolved soon. As Google released their latest version of Android Marshmallow back in October, the operating system today is only on 0.5% of Android smartphones. This certainly isn’t what Google had hoped for when they released the latest version, but unfortunately they don’t have the option of making things better.

While shares of Alphabet Inc (NASDAQ:GOOG) are trading down 2.3% in the pre-market this morning, Google surely is trying ot figure out how to fix this potentially dangerous problem. With new features, bug fixes and innovations on each new release of Android, Google’s goal is to get the OS rolled out to as many smartphones as possible, but the problem is, it is up to the handset manufacturers, such as Samsung, HTC, LG, and Microsoft to push the updates to their users.

Not only does this ultimately hurt the end consumers of smartphones, in that they don’t get the latest versions of software, but it also harms developers, and in some cases may turn them away from developing for Android altogether.

“No one wants to develop for an operating system that is only on a tiny fraction of consumers’ smartphones,” one Android developer told IR.net. “For now, I’m simply waiting until the adoption rate increases before I begin updating my app or creating new apps.”

While this doesn’t appear to be a huge problem for Alphabet Inc (NASDAQ:GOOG) now, if this continues, it certainly will be something that needs to be addressed.

The stock increased 0.14% or $1.04 during the last trading session, hitting $743.62. About 11,730 shares traded hands. GOOG has risen 37.63% since June 3, 2015 and is uptrending. It has outperformed the S&P500 by 43.48%.

From a total of 28 analysts covering Google Inc. (NASDAQ:GOOG) stock, 24 rate it a “Buy”, 0 a “Sell”, and 4 a “Hold”. This means that 86% of the ratings are positive. The highest target price is $900 while the lowest target price is $700. The mean of all analyst targets is $826 which is 11.08% above today’s ($743.62) stock price. Google Inc. was the topic of 38 analyst reports since July 21, 2015 according to the firm StockzIntelligence Inc. Pacific Crest maintained shares on December 21 with a “Overweight” rating. Pivotal Research maintained shares with a”Hold” rating and a $740 target share price in their report from an October 23. UBS maintained GOOG stock in a recent report from October 23 with a “Buy” rating. Credit Suisse maintained the rating on October 23. Credit Suisse has a “Outperform” rating and a $850 price target on shares. Finally, Needham maintained the stock with a “Buy” rating in a report they issued on an October 23.

The institutional sentiment decreased to 0.67 in Q2 2015. It’s down 0.53, from 1.2 in 2015Q2. The ratio dived, as 445 funds sold all their Alphabet Inc shares they owned while 412 reduced their positions. 109 funds bought stakes while 464 increased their total positions. Institutions now own 203.36 million shares which is 12.54% less than the previous share count of 232.53 million in 2015Q2.

Ancient Art L.P. holds 22.07% of its total portfolio in Alphabet Inc, equating to 213,887 shares. Jgp Global Gestao De Recursos Ltda. owns 38,052 shares representing 12.71% of their total US portfolio. Moreover, Cantillon Capital Management Llc has 11.84% of their total portfolio invested in the company, equating to 888,378 shares. The California-based Dalal Street Llc has a total of 11.16% of their portfolio invested in the stock. Glade Brook Capital Partners Llc, a Connecticut-based fund reported 50,799 shares owned.

Since February 25, 2015, the stock had 0 insider purchases, and 44 selling transactions for a total of $594.51 million in net activity. Brin Sergey sold 16,670 shares worth $10.24 million. Page Lawrence sold 16,670 shares worth $10.34 million. Doerr L John sold 5,269 shares worth $3.33M. Drummond David C sold 5,290 shares worth $3.39M. The insider Mather Ann sold 6,000 shares worth $3.48 million.

Alphabet Inc is a collection of Companies. The company has a market cap of $517.18 billion. The Company’s collection include Calico, Google’s health and longevity effort; Nest its connected home business; Fiber, its gigabit internet arm; and its investment divisions such as Google Ventures and Google Capital, and incubator projects, such as Google X. It has 34.98 P/E ratio. These will be managed separately in Alphabet.

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