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’
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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
The weekly performance of the stock has a trend of constant growth with a significant growth in price compared to the IBM stock which happened in week four to six (09/30/11-10/06/16). A major factor for the large jump in the stock price is due to the shocking current news of Google acquiring Motorola Mobility for $12.5 billion. Right after the announcement of
Google’s mission is to organise the world’s information and make it universally accessible and useful. Google’s main business is the provision of web search and delivering both performance and brand advertisement, among other online products. The company’s main source of revenue is from digital advertisement related activities, which accounts to 92% of the revenue. The remaining 8% of the revenue comes from other products that Google sells like; apps, hardware, subscription fees for cloud platform, maps, and other services. The primary listing for Google Inc. is on the NASDAQ, but it is also traded on 18 other exchanges in 10 countries (Google, Financial Times).
The Price earnings ratio is our Fifth fundamental and while i could not find the earnings estimates on google, yahoo did have them and they estimate by quarter giving the second quarter of 2017 a projection of $.91 which is not their lowest prediction but is still fairly low. When we figure this into the last three quarters we end up see in an estimated earnings per share of $4.63 which is similar to Google’s current earning per share. Using these number we see a small decrease in the price of the stock at $55.37 and this could be a good sign if you are willing to wait to
While I totally appreciate the slight negative opinions of others here in my personal opinion it all comes down to the fact that Google is actually a business and so has to make money. I appreciate that some of its dealings are a little 'shady' but show me a Global corporation that doesn’t come across this way in some elements of what it does. (Think Apple and its over priced media services.)
Today, Google, Inc. is worth more than General Motors, McDonald's and Disney combined, and the company continues to model the way in the global technology industry in which it competes. In fact, the company's name has become a verb and it is common practice for consumers to "Google" what they want to find online. To determine how Google, Inc. reached this dazzling level of performance in a relatively short period of time, this paper provides an analysis of the three external environments in which Google competes, the general environment, the industry environment and the competitor environment. Next, a discussion of two specific strategic issues as well as opportunities and threats that are facing Google, Inc. is followed by a summary of the research and important findings in the conclusion.
GM is a solid investment, and is much better than the bears are making it out to be, but it still has a ways to go in comparing to Ford. The company still has big pension costs, although not as big as before filing for Chapter 11. Granted, Ford does as well, but with a huge run up in shares, this alleviates some of Ford 's problems, as the company puts shares into the pension. GM moving into electric cars is a positive for the company, and I have no doubt that the Chevy Volt will outsell expectations (Nachman 2010).
Google Company is one of the global leaders in technology and in enabling people access information from the internet through their efficient search engines. Google immediately gained the attention of the internet sector for being a better search engine than its competitors (Wheelen, Hunger, Hoffman, & Bamford, 2015). This was after a tremendous effort in marketing their services and capturing a large market worldwide. However, there being so many risks and challenges in this line of business Google has had the urge to come up with new strategies so that they are able to overcome any challenge before them. The major problem that Google has
Google is one of the most popular, and most used web search engines in the world. Google also has many services that helps you send mail, generate website pages, and create blogs. With all of these great tools come many great, user-friendly features specifically tied to Google. Google has vastly become one of the best search engines in the world, if not the best. Google averages about 12 billion searches per month, which is the most by any search engine in the world. Users can also search for photos, newsletters, and even geographic locations. The best part is, that all of these services are basically free. Google has also set to build more then just a search engine. Google is working on Google glass, self-driving cars, and even have a cell phone called the Android. Google also owns the rights to YouTube, where many users go to upload and watch countless videos. Another great thing the company is doing is spending money on alternative energy sources; last year Google spent 1 billion dollars trying to increase the use of wind and solar energy. Google is also fighting in D.C. to keep the Internet free for Americans. Lastly, Google has one of the best working environments in the world. Google has been the number 1 best company to work for 5 times in a row, including this year. They have been reported to the best human resources department in the world, taking their employee’s happiness over profit. There is no doubt in anyone’s mind that Google is not the best company to work
Alphabet Inc. (Google) stock symbol GOOGL is traded on the NASDAQ. As of June 3, 2016, Alphabet Inc. (Google) 52 week high was $789.87 and low was $ 515.18, which closed on the previous business day at $ 730.40. The pricing earnings ratio (P/E) was $29.44. Per Yahoo Finance Analyst, Alphabet Inc. (Google) is listed as 1.8, which is a “strong buy in today market.” (Yahoo Finance. 2016.). The pros of investing in Google stocks are the continued provide consumer with new technology such as Google Chrome,
The stock that I have analyzed is Apple (AAPPL), which it falls under the technology sector and trades under the NASDAQ. This sector holds the biggest companies around the world. A lot of these companies are well known such as: Amazon, Google, LinkedIn, and etc. The technology sector is an undeniably investment opportunity for every investor around the world. Lets face it technology keeps improving and we have only seen the beginning of it. These companies, such as Apple, are associated with constant innovation and invention. Our modern economy relies upon the technology sector to improve quality, productivity, and profitability.
Google Inc. provides the biggest threat to Apple Inc. due to the hugely growing line of the Android market and their overwhelming ability to provide advertising to vendors. This seemingly puts heavy pressure on Apple to keep up with new products and to continue to create the next best thing. Google provides a much different way of recording their revenue. This is due to the fact that they receive revenue in a much different way. Google, unlike Apple who mostly sells products over services, sells services over products. The main source of income they receive is from providing there vendors with advertising space. As much as 96% of the company’s revenue comes from this source (Google Inc., 2012). Within this variation, they recognize revenue a little differently. Since most of the revenue comes from advertising, Google collects most revenue on a
Google’s total assets have steadily increased dating back from 2008 to 2012. Some key figures to point out in their assets are the slow growth between the second half of 2008
Google is the most successful information technology and web search company in the world. It was founded in 1998 by two Stanford Ph.D. students, Larry Page and Sergey Brin. The company name, Google, is a play on the word “googol” which is a mathematical term for the number 1 followed by 100 zeros. Larry Page and Sergey Brin chose this name to reflect the large amount of information on the web. The two created this search engine so that people can find anything on the web all in one place. The company’s mission is “to organize the world’s information and make it universally accessible and useful.” Now, the company is far more than a search engine website, it has grown to be a substantial collection of products and services that are
In conclusion, Google is a sound investment that according to the analysis will continue to increase their profits and their dominance in the marketplace.
Google is one of the most successful corporations that have ever been established. Through innovation, persistence, growth,