Google Inc (GOOG) Will Go Even Higher

Page 1 of 2

The internet advertisement industry might be the fastest growing industry around. We are moving into an era where businesses will be entirely dependent on online advertisement for success. Google Inc (NASDAQ:GOOG) and Facebook Inc (NASDAQ:FB) are the two best positioned stocks to benefit from this trend. The primary concern for all internet advertisement based businesses is mobile monetization. In its recent earnings report, Facebook has revealed its mobile monetization strategy, but Google is yet to accomplish this difficult task.

Google Inc (NASDAQ:GOOG)Computing is shifting to handheld devices that have a different functionality as compared to conventional computing. ‘Explorer based’ browsing allows Google to publish adds on their website, as a large part of the traffic is routed through their search results. Smartphone applications minimize the usefulness of Google because users can access their destination through pre-installed applications. Therefore the market has been closely monitoring Google’s mobile monetization strategy and its ability to get the maximum out of Android. The company is facing heavy competition from Apple Inc. (NASDAQ:AAPL)’s iOS and there is a potential threat from Microsoft Corporation (NASDAQ:MSFT)’s Windows 8. The search giant is depending heavily on the following factors to drive future growth:

I.  Growth from areas other than search, primarily YouTube and Enterprise.

II.  Successful conversion of the mammoth potential of Android into actual revenue and profit for the company.

III.  Continued expansion in international markets due to growing market share of online advertisement.

IV.  Becoming the leader in cloud computing, which can place it in a dominant position in the global arena.

Fundamentals

Despite a worsening economy and shrinking advertisement budgets, Google was able to report a solid quarter. The market was expecting Google to report an EPS of $10.56 on revenue of $15.4 billion for its 4Q2012. The company reported an EPS of $10.65 and revenue of $14.4 billion, beating the earnings and missing revenue estimates. The company saw increased growth from international markets and a slight growth slowdown in the US market. The revenue growth for the quarter was healthy at 24%, despite fiscal cliff concerns and a generally weak economy.

During the quarter revenue of approximately of $8.4 billion was driven by Google-owned sites, while $3.4 billion came from partner sites. The company is focusing on increasing monetization from its mobile platform and YouTube. The failed attempt of Apple to launch their map application has given Google an opportunity to step in with iOS 6 map application. This application has become the most downloaded application on the iOS for 2012.

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs in the World

Most Expensive Day-Care in New York City

The 10 Cheapest Places to Retire Abroad

Top 10 Most Expensive Luxury Cars in the World – 2014

Killer Small Business Ideas

The 50 Best Personal Finance Blogs

Most Expensive Apartments in New York City

Bloodiest UFC Fights Ever Fought

Most Expensive Rum Brands in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!