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Why I Own Google Inc. Stocks

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It’s all about technology stocks these days and Google is considered a long term buy. In July for example, Google gave its investors a 20% increment beating financial analysts ' expectations in its quarterly earnings report bringing it to up to a whopping 32% year to date. The stock also recorded earnings per share of $6.99, beating Wall Street estimates of $6.70.
In considering the Google stock, I looked at its quality, growth potential, valuation and strong financial performance. (Sanders, 2015)
1. Quality: Andreas Cardenal wrote in a July 2015 article, “Why I Own Google Inc. Stocks” that The Google name is very powerful because it is one of the most valued brands in the world. The name carries so much power that the term ‘googling’ …show more content…

The online advertising industry made an estimated $49.45 billion in revenue in 2014 and this number is projected to grow jump to $83.89 billion by 2019. Also, spending on Digital advertisements has been estimated to rise from $145 billion in 2014 to $253 billion by 2018. Even with competition from other small companies, Google is most likely to continue as one of the main players in this thriving online advertising industry in the years ahead. (Cardenal, 2014)
3. Valuation: A high stock price can make even the best companies bad investments but in the case of Google, this is hardly the case. In an October 2015 article, Jack Delaney wrote about Google’s 16% second quarter earnings which added about $70 billion dollars to shareholder value which is a record on Wall Street and one that had been forecasted for 2016. (Delaney, 2015)
This has helped the company in its leadership status especially in the online advertising industry. It has also been able to show its profitable business model and growth potential. (Cardenal)
4. Strong Financial Performance: Google continues to show consistently strong financial performance. It reported a $66,001 million revenue which grew at a compound annual growth rate (CAGR) of 17.6% between 2010 and 2014 and an annual growth of 18.9% in 2013. This was attributed to the increase in advertising revenues from its various websites and other revenues. Its net income grew from $12,920 million in 2013 to $14,444 million in

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