Why Google Is A Good Investment

last updated on

Why Google Is A Good Investment

Why Google Is A Good Investment?

The California-based business, one of the most well-known and well-known private companies in the world, handles billions of search inquiries every day. Internet search continues to be the major source of the company's sales and profits from servuces including youtube video, Google analytics, and Alphabet robotics.

One of the best-performing stocks of the twenty-first century is Google, which began trading in August 2004 at just over $50 a share and has since grown to a class A share value of just over $1,125. Despite not paying dividends, Google has attracted investors of all shades who have helped it grow into a $660 billion business.

In April 2014, Google divided its stock, resulting in A and C shares. The split increased Google's share count by two and decreased its price by 50 percent.

Every day, Google receives around 3.5 billion searches. Google makes a little amount of money from each search because it sells advertisements next to the results. Google controls 85% of the mobile search market and 75% of the internet search market, respectively. Additionally, as the internet becomes an ever bigger part of peoples' daily lives worldwide, search on it continues to expand.

This is the key component that makes Google a secure investment since it generates significant profits for the business. Google's sales and profitability are derived from search to over 90%. The initiatives that Google believes will eventually turn into profit centers are funded by these earnings and receipts. It enables the business to assume significant risks that other businesses could not possibly imagine.

All stocks are exposed to risk, Google must contend with major legal and regulatory issues as well as the ongoing failure of its Motorola purchase. When they read too many bad news items for too long, shareholders start to lose confidence.

Google is subject to the same long-term risks as other technology corporations. There is no rule that says tech bubbles can't arise, collapse, or fall in valuethe NASDAQ has done so in the past. Between 2010 and 2015, U.S. stocks grew remarkably, but it's not totally apparent that the fundamentals support that increase. Investors in Google might lose hundreds per share even if there is a little explosion.

However, because of the dominance of its search business and substantial cash reserves, the company continues to be a secure investment.

Trending Stories