Technology

Should people purchase Google stock?

The year 2020 is not good for any company whether small or big and the reason is covid-19. Some companies closed their business while some have faced huge losses. The performance of Google stock was also not good in comparison to other companies like Facebook, Amazon, and many more.  In the third quarter of the financial year 2020-2021, Google again started earning revenue. It showed the results of the revenue, which is more than its competitors. This revenue was earned due to advertising business.

Because of this earning, a lawsuit was filed against the company by department of justice. This was done because a lot of cash was on hold due to GOOG stock price. People all over the world know the company name as Google but in 2015, the company has opened another holding company called Alphabet. Which was made to carry on the business of advertising. The CEO of the company is Sundar Pichai

Transparency of the company

The strength of the company lies in artificial intelligence but it also uses different modes of advertising and these include YouTube, cloud platform, and hardware products. The domination of digital advertising and marketing is still in the hands of Google in spite of the fact that its competitors are also expanding.  Another competitor of the company is Amazon and due to its coverage of the market, Google has changed the way of handling e-commerce market.IN 2015, Larry Page was replaced by Sundar Pichai as the CEO of Alphabet company. Sergey Brin also resigned as the president of Alphabet. YouTube channels have also transferred the advertising media from television to digital channels. There are millions of subscribers of YouTube in music and premium sectors. YouTube TV also has more than three million subscribers.

Analysis of GOOGL stock

IN the third quarter of the FY20-21, the revenue of the company was risen by 14% Google has announced that it will announce the profits that it has earned with the help of cloud technology. The announcement will be made in the month of December. YouTube advertising has also risen by 32%.

Metrics of GOOGL stock

Accenting methods were also changed by the company in 2018 as it started GAAP in which stock based compensation is also included. The dependency of Google on Apple and other partners led to rise in traffic acquisition cost. The company depends on Apple in order to generate revenue with the help of advertising. In the quarter of the current financial year, traffic acquisition cost of Google rose to 9%. Google is facing strong competition from Apple as Google has launched 5G phones in September while Apple has done so in October.

Still, it can be said that purchasing GOOG and GOOGL stock is still beneficial for the people. If you plan to buy this stock, you can check its cash flow at https://www.webull.com/cash-flow/nasdaq-goog.

Leave a Response