Google(GOOG) is not quite 20 years old, yet it has become part of the global language for getting things done. “Googling” for answers can now be just as satisfying when GOOG-ling for profits. The company has grown to a whopping $68 billion in cash reserves against $7.7 billion in debt.
By The Numbers
The usual measures of value do not favor Google, the profits to earnings ratio 32.61 and the number of shares is also quite high. This is a case wherein the numbers do not tell enough about an extraordinary company in an exceptional time of its existence. The current price per share is above $700, yet one can easily foresee a lot of growth in the market. It has a built-in feature for diversification in its broad array of ventures, plans, and developments. Crossing many sectors and perhaps inventing a few, Google is well positioned against volatility. The stock price grew by 124 percent in the past five years. Sales increased by 10 percent or more in six consecutive years, and earnings per share improved by eight percent in 2015.
Innovation Is The Primary Driver
Globalized economy holds mysteries as events and news from disparate parts of the globe can affect stocks and markets in profound ways. Many powerful forces seem to be at war with progress such as the China Government and its attempts to control its stock markets. Hostilities seem endless and ever more complicated. Needs also accelerate, and many governments now invest heavily in solutions to difficult issues like breathable air and sustainable water. Innovation is in demand.
Old Methods Find New Hotspots
Traditional approaches to investing continue but always with the influence of today’s events. Real estate investors have traditionally chosen old cities in Western Europe as favorite places for investment. The old method has found new locales. For example, foreign real estate investment has swollen values in North America’s hotspots like Toronto, Vancouver, New York City, and San Francisco, and Southern California as stable economies and favorable banking attract money from around the globe. GOOGL has a similar stability and forward view of progress. Less focused on gadgets and specific types of equipment than Apple, Google has a base that can support spectacular sales in a number of fields.
New Challenges And Formative Steps
The massive scale of modern markets can be tantalizing to industry, yet things that work on small scale have a certain tendency to succeed in bigger scales. Many companies succeed because of a massive market that occurs perhaps once in a generation. Apple and its massive phone sales to China were an example of this phenomenon. Other companies succeed by creating markets that last for generations. Google seems to fit that description. It has depth and breadth in many vital areas and technology that can grow beyond current scope. A driverless car can become the foundation for modern urban travel and commercial transport. It raises intriguing questions; can driverless cars expand the range of travel with greater safety, higher speeds, and cause revisions in roads and highways too?
Pondering New Limitless Futures
Goog, GOOGL has enormous assets and makes significant reaches into the core of societies. It raises possibilities that extend the potential impact of the modern corporation. Travel, artificial intelligence technology, entertainment, cable, and solar energy are just a few of the significant Google ventures.