Investing in Google Stock - What to Consider Beforehand
A Brief Overview of Google StockGoogle stock (NASDAQ: GOOGL) is one of the world's most recognizable stocks, trading on the Nasdaq stock exchange since 2004. Google, Inc. is a multinational technology company whose core products are the Google search engine, Google Ads, and its suite of Internet-based products and services. Google also owns the popular video streaming service YouTube.Is Google Stock a Good Investment?Google stock is a popular pick among many savvy investors, thanks to its popular products and services, strong competitive advantages in its dominant market share, and consistent profitability. Google stock has seen long-term consistent growth, with the stock price quadrupling over the past decade. Despite recent significant volatility, the stock has still gained more than 50% over the past five years.Things to Consider Before InvestingWhen considering whether or not to invest in Google stock, there are a few key things to consider beforehand: Competition - Google faces competition from other tech giants such as Microsoft and Apple, as well as smaller companies like DuckDuckGo and Yahoo, all vying for a piece of the search engine market. Diversification - Although Google stock may be a good investment on its own, it’s important to remember to diversify your investments to spread risk, with other stocks and assets such as exchange-traded funds. Valuation - Google stock is relatively expensive compared to other tech companies, so it’s important to pay attention to the valuation of the company before investing. Timing - It’s wise to invest when the stock is relatively low in price. Pay attention to market trends, and when buying, be sure to buy in increments and regularly invest for the long term.Bottom LineGoogle stock has shown consistent growth over the years, but it’s important to research and understand the company and the markets before investing. With its popularity and steady long-term gains, Google stock may be an attractive choice for investors seeking long-term growth.
Google Stock Vs. Other Major Tech Companies
Google Stock Performance Compared to Other Major Tech CompaniesWith the ever-growing dominance of technology in our day-to-day lives, it is no surprise that tech stocks have performed strongly over the past 10 years. One of the biggest and most successful tech companies is Google, and its stock price has been on a fairly steady rise in 2020. In this article, we will compare and contrast the performance of Google stock against some of the other major tech stocks.AmazonAmazon, which has become one of the world’s largest and most successful tech companies, has seen its stock price rise over the past decade. It has seen even more impressive gains in 2020 and has been one of the best-performing stocks of the year. It has outperformed Google stock, but not in a huge way, only by about 1.5%.MicrosoftMicrosoft has also been one of the best-performing tech stocks in 2020 and has outperformed Google stock by approximately 10%. Microsoft’s stock performance has been considerably better than Amazon’s, likely due to the company’s aggressive move into the cloud computing space.AppleApple, the world’s most valuable tech company, has seen its stock price skyrocket this year. It has significantly outperformed Google stock, rising by approximately 30%. This is largely due to Apple’s strong move into the services space, and its continuing success with the iPhone.ConclusionOverall, Google stock performance has been varied this year. It has outperformed some of the other major tech stocks, such as Amazon, but has not been able to keep up with the extraordinary gains seen by Apple and Microsoft. Nevertheless, the company’s stock is still up from where it was at the beginning of the year, and it is still one of the most successful tech companies in the world.
5 Reasons Why Investing in Google Stock is a Wise Decision
1. Google's Sector-Leading Innovation Powers Google has been at the cusp of some of the most revolutionary technologies, from artificial intelligence (AI) and autonomous vehicles, to virtual and augmented reality.A core part of the company’s mission is to “Organize the World’s Information and Make it Universally Accessible and Useful”. This is often done with remarkably efficient solutions that have become synonymous with Google like Google Search and Google Maps.2. Google's Excellent FinancialsThis cutting-edge innovation has translated into consistent strong financial results, with high gross margins, a low debt/equity ratio, and a 14% return on equity.3. Google Diversifies Geographically and OperationallyGoogle has an established global presence. Not only does the company employ people in more than 70 countries, it also maintains research and development facilities around the world.4. Transparent Management Team The leadership of executive chairman Eric Schmidt, co-founder and recently retired CEO Larry Page, and current CEO Sundar Pichai has been unwavering in their commitment to creating an open, inclusive setting for employees and stakeholders.5. Google's Leadership in Cloud Computing Google has become a powerhouse in the cloud-computing space. The company has claimed the No. 2 spot as the top cloud infrastructure provider. According to Synergy Research Group, Google Cloud commands about 9% of the market share.Combined with its ability to help businesses with consumer-facing products like Chrome and Android, Google is in the perfect position to capitalize on the burgeoning cloud computing space.
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