Today, Google parent company Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) disclosed that it’s spinning off a startup company. Google is being coy with the details for now, but we do know that the business is called Aalyria. Furthermore, it’s a telecom project that manages satellite communications networks for land, sea and even space. GOOG stock isn’t moving much on this news, but there could be ripple effects in the coming days.
What better way is there to generate buzz around a project than to be secretive about it and introduce the details slowly? That way, investors will be eager to learn more about it. Granted, this strategy might or might not work. Still, today Alphabet is teasing some interesting tidbits about its in-progress spinoff business, Aalyria.
One thing we know is that Aalyria’s mission is to manage “hyper fast, ultra-secure, and highly complex communications networks that span land, sea, air, near space, and deep space.” Additionally, Aalyria reportedly has a laser-communications technology “on an exponentially greater scale and speed than anything that exists today.”
GOOG Stock Stays in Place Despite the Aalyria Announcement
That’s big talk — will Aalyria live up to the hype? So far, the response has been muted, as GOOG stock was only slightly up this morning.
There might be a delayed, positive reaction later on, though. Notably, Aalyria claims to have a commercial contract with the U.S. Defense Innovation Unit that’s valued at $8.7 million. Plus, Aalyria’s board of advisors “includes several previous Google employees and executives,” according to a CNBC report.
In other words, today’s ho-hum reaction from investors doesn’t necessarily mean Aalyria won’t be a game-changer. Sooner or later, people might get excited about Aalyria’s Tightbeam light laser technology, which “radically improves satellite communications, Wi-Fi on planes and ships, and cellular connectivity everywhere.”
Only time will tell whether Aalyria is all it’s cracked up to be. There could be a high-conviction investment opportunity here — but don’t expect GOOG stock to reflect this, at least for today.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.