Think of the investments in Loon, Taara, SpaceX and Google Fiber as part of a larger strategy to bring internet access with decent bandwidth to a larger number of humans. Some investments will not pan out, others will bear fruit.
Does this make sense for alphabet? I agree that it does as one of their many bets.
Does it make sense for Loon which spun off as its own company under alphabet with its own leadership and its own stock? That’s the strategic failure I’m talking about, Loon’s not alphabet’s.
They invested in multiple potential paths to a global internet. It's not surprising that they'd drop the investments that aren't as promising as the investments that are showing significant promise.
It's like saying I applied to multiple colleges, and because I only accepted one application, that the other applications were a failure. But, no, it could just mean that I preferred to go to the college that I accepted, but the others were a hedge against that path not working out.
