California-based internet service provider Google’s (GOOG, Financial) path breaking products and service have touched the lives of Millions or even Billions on the planet in one way or the other. The trends of last five years show that online viewership is eating up into the TV viewership space. Mobility (handheld device) and time flexibility are the key growth drivers for the rapidly increasing online viewership. This trend has woken up brands who want to be present where their audiences are. As a result, increasing number of brands is advertising on YouTube, and this is just the beginning. The company also transformed the mobile world with the launch of Android operating system, which almost wiped out Nokia (NOK, Financial) from the mobile space until Lumia was born.
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Action at Google
The company wants to start its own mobile network, supposedly code named as Nova. Last week it entered into talks with Sprint Corp (S, Financial) and T-Mobile US Inc. (TMUS, Financial) to form an alliance to provide wireless service plans. This would be a new business avenue and another great leap for the company and threats for companies like Verizon Communications Inc. (VZ, Financial) and AT&T Inc. (T, Financial).
Google acquired Drone maker Titan Aerospace last year and it is currently developing solar powered drones to cover geographically challenging terrains under Wi-Fi through satellite internet. Last week, along with Fidelity (FNF, Financial), Google invested $1 billion in space exploration technologies (SpaceX) to further its goal.
The company has been witnessing negative winds in the form of anti-trust and spying allegation in Europe. And from time to time it has been embroiled in some legal battles and tax avoidance cases but the same have been ineffective in stealing the thunder away from Google Inc.
Stock talk
Google Inc. stands on a market cap of $350 billion today, making it one of the fastest-growing companies in the world. The company has made it to the list of the world’s 10 most valued brands.
Google started trading at $85 back in 2004. Today it is trading in the $500+ zone, which is a dream figure for many established companies that haven’t been able to achieve this feat even after 100 years in business. In fact the stock had surpassed $600 mark in the recent past and then settled at $487. Some analysts expect that the stock will make new highs and touch the $680 mark soon.
The key competitors of Google are Yahoo! Inc. (YHOO, Financial), Ask.com and America Online (AOL, Financial). All the competing search engine and internet content companies put together are not even half of Google’s market share.
Conclusion
Two-thirds of the world is still out of internet reach, which is a big untapped market. Google is the undisputed leader of the internet game and it has big plans to bring this huge chunk of population directly or indirectly under its umbrella. With the macro perspective of mapping entire world to its internet road map, as well as micro yet decisive perspective in terms of wireless mobile services and YouTube ads, the company has great potential this year and would also gain added edge of its own mobile network in the recent times to come. The stock is currently trading at a lower price than it was few months back. Most analysts are bullish on the stock. So it is a definite buy for those looking to create new portfolio and for investors who own Google shares, it is advised to hold on as the stock is expected to go up.
