From offering email solutions to providing the most powerful search engine, Google is a giant in web innovation. Due to its consistent growth, Google stock’s value is always high, making it one of the best and most reliable companies to trade. Today’s post analyses how to buy Google assets.
Currently, “Google is a dominant force in the search market share as it controls more than 90% of the market”, says Business Insider.
As of 2015, Google restructured to become part of its parent company, Alphabet Inc. This company operates and owns other tech-based organisations across the globe. On its own, Google is among the top 5 biggest firms worldwide.
Sergey Brin and Larry Page founded Google in 1998 when they were still students at Stanford University. Google reached a market capitalization of $1,201.54 billion in 2020, making it the third US-based company to exceed the $1 trillion market value.
Google mainly specialises in a wide range of internet-based products and solutions. Its customers access innovative tools, such as maps, emails, advertising, payment methods, cloud storage, and mobile wallets.
The company regulates the majority of media available to online users. They also own the Android operating system used in most smartphones today. Besides, Google owns YouTube too. All in all, digital advertising is Google’s leading source of income.
Businesses pay a lot of money to have their ads featured on YouTube, on websites, and on blogs. Apple is, however, trying to rival Google by providing alternative products and software solutions like the iOS operating system and Apple Pay.
Other tech businesses like Facebook, Yahoo, Microsoft, and Amazon also compete with Google in the Tech industry. Google, however, remains at the forefront, thanks to the continued release of cutting-edge products and software solutions.
Is it Worth Trading in Google shares?
Traders’ goals, available funds, and investment portfolios determine the answer to this question. According to information from Market Watch, Google’s current stock price is over $2,000 per. Simply put, traders need more than $20,000 to buy 10 or $200,000 to buy 100 Google shares. The best thing is that Google allows traders to start buying one stock asset at a time.
Presently, GOOGL and GOOG are Google’s stock symbols at NASDAQ. The two have different prices, though the difference is insignificant. The two originated from a Google stock split share price, leading to two classes: Class A (GOOGL) and class C (GOOG). Google insiders own class B shares, which the company is yet to release to the public.
The Performance of Google Stock
Before the Covid-19 pandemic, Apple, Amazon, and Facebook’s assets performed better than Google’s, and this trend continued all through 2020. The Internet is Google’s primary source of revenue. Thus, Google’s marketing income reduced significantly as businesses reduced their marketing budgets due to the effects of the coronavirus pandemic.
In the second quarter, Google posted revenue of $38.3 billion in 2020, which was 1.5% less compared to the previous year’s revenue. This revenue was the company’s first decline in many years. While there was no cause for alarm for the company, the decrease in revenue was a warning for many traders.
In the third quarter, the revenues increased by 14% due to removing the traffic acquisition costs. The marketing revenue rose to $37.1 billion in the third quarter of 2020 from 2019’s value of $33.8 billion.
Similarly, the company’s earnings increased by 24%. Despite trimming its capital spending, hiring, and marketing during the coronavirus pandemic, Google’s total revenue still increased by 14% as they recorded a high of $46.17 billion.
Top 3 Reasons for Buying Google Stock
- A Global Leader in Online Marketing
Google owns the world’s best SEO, streaming video site (YouTube), mobile operating system (Android), email application(Gmail), and web browser (Chrome). All these applications support the company’s core promotion business. According to eMarketer, Google will continue to beat Facebook with regards to ads.
All of Facebook’s and Google’s small rivals, including Amazon, Alibaba, and Tencent Holdings, have single digits for the ad market share. Thus, most businesses that want to market online will likely contact Facebook or Google before opting for other tools.
- Google Cloud Growth
Though Google’s ad business encountered a hitch in 2020, its cloud solutions revenues increased by 46% to $13.1 billion as people consumed cloud solutions a lot throughout the pandemic. While the company is yet to record profits from cloud solutions, it ranks third in the cloud industry behind Amazon Web Services (AWS) and Microsoft Azure.
Google will start to get profits as the company expands. In the meantime, though, it can subsidize this with its marketing revenue. This research projects the cloud computing industry to increase at a compound annual growth rate (CAGR) of approximately 19.1% from 2021 to 2028. This is good news for Google’s cloud business.
- Exceptional Valuation
Researchers anticipate Google’s ads earnings and revenue to increase by 72% and 37%, respectively, in 2021 compared to 2020. Next year, they predict the earnings and revenue to increase by 5% and 17%, respectively. Based on these anticipations, Google trades at seven times forward sales and 26 times forward earnings, meaning it’s competitively valued compared to its rivals.
Why Sell Google Stock?
Although Google’s main business seems strong, a couple of antitrust clashes could spoil its incredible growth. Recently, the United States Department of Justice sued Google for its assumed monopolisation of search-based and online promotion markets. This organisation plans to sue Google again due to the company’s monopoly of various promotion technologies.
What’s more, two separate bodies sued their own cases against Google concerning its promoting and SEO businesses. Previously, the European Commission investigated Google AdSense, Google Shopping, and Android. The European Commission accused Google of leveraging its products and solutions to push its rivals out of the respective industry.
These antitrust cases resulted in various fines that totaled over $8 billion. The company also faces antitrust cases in India, South Korea, Australia, and other countries that could join these countries. This pressure could pressure Google’s stock value, meaning buying the assets could be the wrong move.
How to Buy Google Stock
Previously, going to brokerage firms was the only option to purchase stocks. Luckily, this is no longer the case, thanks to advancements in technology and the internet. Currently, several software and brokerage firms provide access to Google stock. An online brokerage firm, such as Tixee is one such brokerage.
Trading Software and Online Brokerage Firms
Though traders can buy Google assets on the internet, the company’s assets are only accessible to several brokers because NASDAQ restricts access to a few online brokerage firms. The notable point is that these resources could be expensive on some software.
Signing up for an account at a brokerage firm is similar to signing up for a typical bank account. The only major difference is that traders store assets as opposed to money.
An Overall View
In conclusion, Google is a high-performing and top-rated stock that could potentially offer great returns. The fact that the company is a global leader when it comes to innovation means that its future is promising. As with any asset though there is always a risk so it would be wise to diversify trading strategies.
Over the past year, Google’s resources have risen considerably. Traders overbuy assets on a short-term basis, and the truth of the matter is that this overbuying happened back in March 2020. Over the next couple of months, profit takers could begin to cash in some gains on Google stock.
Nonetheless, Google will still be a good option even at the projected price. On a valuation basis, Google current share price is reasonably priced as a whole. What’s more, Google’s prospects for growth are more attractive than other company’s prospects in the index. The cloud solution, in essence, could be a boom in the next few years.
In the meantime, the company seems to continue to be the world’s best in marketing and SEO. The mere fact that some commissions have ganged up to slow the company’s growth indicates how influential and strong Google is.
With digital marketing increasing alongside economic recovery, Google is rightly positioned for the years to come. Even with the coronavirus turmoil, Google assets are worth buying, especially for patient and long-term traders.
The Best Software for Google Stock Purchasing
For those that want to get into the stock market and trade Google, the first thing is to look for a reliable stockbroker who gives access to NASDAQ. Remember that picking the right online brokerage firm is vital as it will determine your success in the stock market.
Tixee is a reliable online broker that lets customers trade in forex, securities, indices, cryptos, commodities, mutual funds, CFDs, and other top-rated assets, including CFDs on Google stock Signup for an account here.
Disclaimer: This article is not investment advice or an investment recommendation and should not be considered as such. The information above is not an invitation to trade and it does not guarantee or predict future performance. The investor is solely responsible for the risk of their decisions. The analysis and commentary presented do not include any consideration of your personal investment objectives, financial circumstances or needs.
Risk Warning: Our products are traded on margin and carry a high level of risk and it is possible to lose all your capital. These products may not be suitable for everyone and you should ensure that you understand the risks involved.