GOOGLE IS BETTER THAN GOLD
With Google stock trading close to all time highs, you can't deny it makes sense!
Google released their latest earning report on Oct 29th and investors were delighted to see that the internet giant had delivered 𝗥𝗲𝗰𝗼𝗿𝗱 𝗥𝗲𝘃𝗲𝗻𝘂𝗲, 𝗘𝗮𝗿𝗻𝗶𝗻𝗴𝘀, 𝗢𝗽𝗲𝗿𝗮𝘁𝗶𝗻𝗴 𝗜𝗻𝗰𝗼𝗺𝗲 & 𝗖𝗮𝘀𝗵 𝗙𝗹𝗼𝘄. That said, here are 5 more reasons why Google stock should outperform the market over the next 12 months and why it will continue to remain my number 1 investment going into 2021!
1) STRONG FINANCIALS
Google has more cash than any other company on the planet right now and not even half of the amount of debt that other tech giants such Amazon, Apple & Microsoft have. Google also has much greater earnings per share than the rest of its peers that make up the FAANG acronym and only Microsoft has comparable gross margins!
2) STOCK IS UNDERVALUED
Google is trading at a cheaper PE ratio than other trillion dollar companies (Amazon, Apple & Microsoft). It also has the ability to bring down it's PE ratio quickly via share buy backs thanks to its enormous cash hoard. Despite 50% of S&P500 companies reportedly reducing stock buyback plans due to the pandemic, Google actually purchased $8.2b worth of it's own stock in the most recent quarter (more than 4x the amount they purchased during the first quarter of 2019).
3) COMPETITIVE ADVANTAGE
Warren Buffet is quoted as saying "The most important thing when investing is trying to find a business with a strong moat".
Google has a 93% market share in the search industry and thanks to this monopoly, the company is able to collect an unrivalled amount of data on consumers. This allows Google to release better products than their competitors (e.g. Google Maps, Google Home, Google Translate, Gmail and many others). Having this colossal amount of data and understanding of their customers also gives Google a huge advantage in almost any industry that they decide to enter.
4) INCREASED DIVERSIFICATION
Google undoubtedly relies heavily on its search engine for advertising revenue. However Youtube, Cloud & Hardware (Pixel phones & smart speakers) continue to grow quickly and add to the companies' top line. We are also seeing increased monetization of products including Gmail, Maps, Google Drive, Google Classroom, Meets & Stadia.
5) GROWTH OPPORTUNITIES
Google is at the forefront of the Autonomous Vehicle and Quantum Computing industries! Both sectors are estimated to be worth hundreds of billions of dollars and Google will almost certainly take a considerable portion of this revenue! Google also has a specialist venture capital arm that has invested in over 500 start-ups over the past decade including the likes of Uber, Lemonade, Slack, Docusign & Ripple! Not only will this allow Google to leverage their partnerships with these disruptive technology businesses going forward but as these companies continue to grow then so too will Google's return on investment!
I believe that these 5 factors alone justify buying the stock and you can find a lot more reasons online... Just GOOGLE IT!
Whilst you're here, make sure to check out at least 1 of my following blog posts!
#tradeinplaces #trading #trade #learntotrade #tradingtips #etoro #finance #travel #travelblog #travelling #stocks #stockmarket #beststocks #stockpicks #stocks2020 #investing #investor #investment #investingtips #learntoinvest #howtotrade #howtoinvest #stockportfolio #cryptocurrency #bitcoin #ethereum #xrp #google