A leading global technology company focused on improving the way people connect with information, Google Inc (NASDAQ:GOOG) , just reported its first-quarter financial results for 2013. Compared to first quarter results from 2012, EPS rose from $10.08 to $11.58, while revenue increased from $10.6 billion to $14 billion. The results beat analyst estimates on EPS, but missed on revenue, but the stock reacted positively and shot up 4.43% the next day.
Year over year, net cash provided by operating activities decreased 1.65%. In the quarter, Google Inc (NASDAQ:GOOG) poured $2.44 billion into investing activities, a distinct difference from last year’s first quarter in which the company had derived cash flow from investing activities.
Google Inc (NASDAQ:GOOG)’s complex and diversified business is focused on the ways people connect with information, with major focuses of the company including its Android platform, Google +, an iconic search engine, YouTube, Gmail, and a plethora of other services. As Google approaches fresh all-time highs, is the company primed for investment or should investors wait for a considerable pullback?
Explosive revenue growth:
In 2003, Google Inc (NASDAQ:GOOG) reported revenue of $1.46 billion; in 2012, the company announced revenue of $50.17 billion, representing year over year annual growth of 48.14%, a strong trend which it is highly anticipated to sustain into the future with projections placing 2017 revenue at $102.37 billion (this growth has been a result of the rapid adoption of the company’s platform and acquisitions).
- Institutional vote of confidence:68.72% of shares outstanding are held by institutional investors, displaying the confidence that some of largest investors in the world have placed in the company and its future.Historic margin expansion:The company’s profit margin has expanded from roughly 5% in 2004 to the current level of 21.84%, an extremely advantageous trend.Dominant position in the industry:Google Inc (NASDAQ:GOOG) currently possesses 67% market share of the U.S. search industry, representing a dominant position which has only grown stronger over the past few years.Net cash position:Despite possessing $8.8 billion in debt on its balance sheet, the company’s $50 billion in cash and cash equivalents results in a net cash position of $41 billion, or roughly $124 per share, a major strength.Solid cash flow:In 2012, Google generated $13.75 billion in cash flow, representing the financial strength the company possesses.