This market also includes a heavyweight like Google Inc (NASDAQ:GOOG), a place where people are already in the habit of going to look for stuff. Just by its diverse nature of offerings, Google may be a better fit for businesses looking for more than just a “daily deals” marketing partner. Let’s face it: Until Groupon Inc (NASDAQ:GRPN) grows up and starts delivering consistent results, it’s a speculative investment at best.
While Google Inc (NASDAQ:GOOG) is another high-priced stock with a TTM PE of 27 (though the forward PE is a more reasonable 23,) and a price to sales ratio a stratospheric 6.2, we have years of proof that it can predictably execute growth and profit. And much like The Walt Disney Company (NYSE:DIS) to Netflix, Inc. (NASDAQ:NFLX), the diversity of Google’s many revenues streams adds a level of downside protection that a one-deal pony like Groupon Inc (NASDAQ:GRPN) can’t match. I can’t think of a company more tied to our connected lives than Google Inc (NASDAQ:GOOG), and one that is able to generate revenue from me nearly every time I use my PC, tablet, or smartphone. And to think that I never actually give Google any money is simply amazing.
But with annual revenues and net income up 155% and 115% respectively in the past five years, it’s pretty clear Google Inc (NASDAQ:GOOG)’s monetization of search through advertising is working. Self-driving cars are another extension of this: think about it- that’s another hour per day that we get to spend online while our cars drive us to work. It’s all part of the Google master plan to keep us plugged in. And it’s working.
Foolish bottom line
Price and value often do go hand-in-hand. But that doesn’t mean that you have to shop in the bargain basement for the best deals. Sometimes the best analysis is to step away from the spreadsheets and look at the real world. Which of these companies will be larger and more a part of more consumers’ lives in five years than they are today? While that’s not all you need to look at, it’s every bit as valuable as any metric you can use.
The article 2 Expensive Stocks to Buy Now, and One That’s No “Daily Deal” originally appeared on Fool.com and is written by Jason Hall.
Jason Hall owns shares of Google Inc (NASDAQ:GOOG) and Netflix. The Motley Fool recommends Google and Netflix. The Motley Fool owns shares of Google Inc (NASDAQ:GOOG) and Netflix, Inc. (NASDAQ:NFLX). Jason is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
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