Google (GOOG, Financial) (GOOGL, Financial) looks well placed with its new approaches to generate top line growth. The web giant is shifting its growth strategies with additional business strategies more aggressively. It is effectively engaged in executing various initiatives such as mobile display and brand building campaigns and upgrading its shopping campaign platforms. It has great potential with its YouTube channels. It is securing upfront commitments from top media agencies that should uplift its performance going forward. Also, its Google Preferred offerings continue to gain traction in the home as well as in the global markets such as Germany, France, UK and Australia.
The web giant has recently launched new add formats customized for mobile screens. It has also expanded YouTube as it rolled over TrueView adds into AdMob’s network of more than 650,000 mobile apps. The web giant is also investing in the digital marketing. It has developed a marketing plan for its new fall TV lineup. Also, it remains on track to crack new deals with Mondelez and Starcom MediaVest. The company expects these growing relationships with the global players will assist the company in better execution of its video and display categories.
Google's innovation
Google has recently developed a cost measurement device for display ads for multi-screening advertising. Also, its mobile display campaigns are now driving more conversions. The company witnessed 15% increase in conversions from its mobile display in the reported quarter. Moreover, its DoubleClick suit continues to enhance its ads business as many brands, agencies and publishers around the world adopting this innovative to display their ads. Also, its DoubleClick Bid Manager is turning out to be a great tool for marketers and agencies, who are effectively navigating growing programmatic advertising space.
In addition, its non-ads business continues to grow at a healthy pace. The company has seeing strong growth potential with its Play, Hardware or Google for Work. Moreover, it is realizing great success with Google Play. Google Play is turning out to be a cornerstone for amazing Android ecosystem. Besides, the web giant has managed to launch its play music in 17 new additional countries. It now has a total of 45 countries in its portfolio for its pay music that should drive its non-ads business growth. Apart from these, the company has its play movies and play books available in 93 and 61 countries respectively.
Google has recently launched Android Lollipop. This is company’s largest release on Android platform that has more than 5,000 APIs for developers. Its appealing features such as better notifications, battery life and security will certainly drive its growth ahead. Also, it brings to the user the refreshed and consistent visual style. This Android Lollipop is also expected to provide updates to the latest software for new devices such as Nexus 6, Nexus 9 and Nexus Player in India as well.
Moreover, the company continues to invest in its growing cloud infrastructure. The web giant is providing cloud computing on-demand access to ground-breaking technologies at affordable rate. It is executing various price cutting and promotional initiatives. Google has recently initiated a startups and offers price of $100,000 in credits for Google Cloud Platform that should certainly fetch many new clients to tis platform. These moves should possibly drive its growth going forward and create value for shareholders in the long term.
Conclusion
Google looks good with some potential turnaround. These turnarounds should lift its bottom line performances going forward. It is executing various campaigns and marketing campaigns that should enhance its sales in the remaining quarters. The analysts have estimated CAGR of 15.90% for the next five years that indicate strong growth potential for the stock in the future. The stock is trading at the trailing P/E multiple of 28.73 and forward P/E multiple of 18.57 that signifies fair valuations for the stock that has a lot of room to grow in the future.
