What Do Google Inc (GOOG) Shareholders Fear Most?

Here is how Google is doing:

Part of the move downward in cost per click is due to the migration towards mobile, but nevertheless revenues grew overall at nearly 23% in the last quarter and it recorded 20% growth in its relatively more mature (and highly smartphone penetrated) markets in the US and UK. In the rest of the World, revenue growth hit 27%. Google is managing the transition very well, and whether search and advertising is desktop or mobile based, Google dominates.

The Bottom Line

In conclusion, I think investors are often afraid of Google Inc (NASDAQ:GOOG) for the reasons expressed above, but the key point is that its core revenues continue to grow strongly, and its strategic development remains on track. Its non core activities shouldn’t detract from the attractiveness of the stock.

Its dominance of search and advertising across multiple formats isn’t going away anytime soon, and given the mid-single digit free cash flow yield and mid-teens earnings growth prospects I think the consensus analyst target of $900 looks achievable. I think it will get there quicker if it starts paying a dividend though.

The article The Five Things That Investors Fear With Google originally appeared on Fool.com.

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