Google Inc (GOOG): One Tech Stock To Buy And Hold For The Long-Term

Page 1 of 2

There is a great deal of debate today in the investment community regarding which direction Google Inc (NASDAQ:GOOG)’s shares will move in both the short and long-term. Yet, the stock continues to hit all time highs, with the production numbers and financials to back it. In this article, I will explain why Google will continue its upward momentum and reward investors along the way.

Google Inc (GOOG)

Recent positive developments

Google recently hit the $800 mark, following a report of possible Google retail stores being in the works. These stores are rumored to provide a display of the company’s consumer electronics products, a move that puts Google in direct competition with the extremely popular Apple Inc. (NASDAQ:AAPL) store.

In early 2013, Google announced better than expected fourth quarter 2012 numbers, due in large part to the company’s continued growing market share of its Android ecosystem. The company presently trades at roughly 20 times its earnings estimates for 2013, which pales Apple’s 10 times trading at its 2013 estimates.

Another factor that has helped to add positive investor sentiment for Google Inc (NASDAQ:GOOG) is the company’s continued strength in the area of online search and display ads. This success could be in part due to lessened regulatory concerns. Paid clicks have helped to drive Google’s market share as well, which increased by 24% over the past year. This factor tends to represent a very healthy advertising ecosystem.

Google’s higher market share in the mobile search market, in comparison to the PC search area, is also helping to provide additional value for the company’s shareholders as mobile advertising also continues to gain share for Google Inc (NASDAQ:GOOG).

In addition, as far as tangible products go, according to comScore, the company’s Android OS represented more than 30% of the overall market in the United States for smartphone sales. Google also has posted solid sales growth for its tablets, the Nexus 4/7/10 and the Chromebook, giving the company a combined revenue from Google Play and hardware of just under $2.5 billion in 2012.

In 2012, Google Inc (NASDAQ:GOOG) acquired Motorola Mobility, which also helped to increase hardware sales, even though Google ended up spinning off its Motorola Home division to Arris, a broadband communications giant, for just over $2.3 billion. Although the shares are trading at or near their all-time high, it is anticipated that share price will continue to rise over the next 12 months by roughly 4.4%.

Competitors

In a move to increase shareholder value, Yahoo! Inc. (NASDAQ:YHOO)! has begun to do away with many of its products that are considered unsuccessful, including its BlackBerry app, Yahoo Sports IQ, Yahoo App Search, Yahoo Message Boards, Yahoo Clues, and Yahoo Updates API. This move is due in large part due to the company’s new description of being “a global technology company focused on making the world’s daily habits inspiring and entertaining.” Investors feel that this “less is more” attitude from Yahoo is positive. Though some of her moves have appeared a bit controversial, ever since Yahoo’s new leader, Marissa Mayer, took over at the company, Yahoo has been seen in somewhat of a new light. One of Mayer’s biggest goals has been to position Yahoo for long-term growth, a move that will ultimately benefit both the company and its shareholders. With a P/E ratio just below 6.9, along with earnings per share of $3.28, Yahoo will likely continue to reward its shareholders in the short-term.

Microsoft Corporation (NASDAQ:MSFT) is currently also poised for some share growth, while continuing to pay a nice dividend to investors as well. With a payment of $0.92 per share, the company’s dividend yield is holding at 3.3%. The company is also holding 28% of cash per share on hand. One thing investors may want to be mindful of is a pending potential fine that may be charged to Microsoft by European Union regulators. This comes as a result of alleged violations over giving users a choice of web browsers. Microsoft has a present P/E ratio of 15.30, along with fairly strong earnings per share of over 1.8. While currently trading near its 52-week low, over the next 12 months, shares of Microsoft are expected to rise by approximately more than 18%.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

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!