Google A Shares (NASDAQ:GOOGL)

CAPS Rating: 4 out of 5

So dominant it’s a verb, Google is the leading internet search provider and uses its proprietary algorithms to offer targeted advertising.


Player Avatar Gainster (42.39) Submitted: 5/29/2013 2:42:26 PM : Outperform Start Price: $435.46 GOOGL Score: -5.29

Google is an extremely innovative company and their areas of expansion are often ground breaking and game changing. It seems like there is no border to where they can expand in the IT sector. Just consider Google Earth/Maps, Android, Street View, YouTube, Google Drive, Gmail, Google Translate, Google Chrome, Motorola Mobility and of course Google Search. And then look into the future with Google Glass, which of course is controversial like Street View was, but ground breaking and game changing and bound to get adopted by the masses, because it's useful. Google is also pioneering with Lockheed Martin into the extreme potentials of Quantum Computing, that is truly ground breaking and game changing and suiting Googel's business very well. Further there are not many ways to invest in Quantum Computing besides Google, Lockheed Martin and IBM. Google even see the perspective in fiber Internet that nobody else seems to grasp, when everybody got fiber in range, then everybody will choose fiber, not so much because of speeds, but more because all other sorts of Internet gets more and more unreliable because of signal noise and this is a very big issue in a world that is increasingly dependent on Internet.

Google is also integrating their products, which makes it easy to just be and stay within the Google eco system. Google also has a very high brand recognition and brand loyalty, which also makes people like to stay with in this eco system.

They have an impressive growth in their assets:
2010: $39 billion
2011: $49 billion
2012: $72 billion

All of this was accomplished in just 15 years.

They trade at a premium (a P/E of around 26), but their product protfolio, their past expansion and their future expansion potentials are worth the premium. There are other companies with far less potential trading at much higher multiples, the prime example being ARM Holdings still trading at a P/E around 80.

Their stock might take a dip, but I'm putting a long on this company, picking up more if it takes a dip.

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