More than five years ago, Google (NASDAQ GOOG) reorganized its business and reorganized it into Alphabet, a holding company whose main subsidiary will be Google, the world’s leading search company. As part of the reorganization, investors were able to distinguish between money maker Google and the lunar investment is lost in the other bets category.
There is no perfect stock and the alphabet is no exception. But the company has an incredible competitive advantage in research and seeks to diversify its business to achieve dynamic future growth. No other company in the world positions itself as an alphabet. This is the main reason for the most attractive. Yes, Google is entering a new era and regulation may become a major issue, but remember that major technology partners like Facebook are also in the competition.
While advertisers are cutting budgets, the current economic wind is hitting Alphabet, but with the onset of important holidays, Alphabet executives believe that advertising revenue will rise again in the near future. Despite the split, the company still records its shares as GOOG for some reason. Alphabet is still just an important agent for its Google jewelry. It can be said that YouTube is at the center of the transition of users from traditional mass media to decentralized, on-demand, and growing consumption of mobile media.
These factors have become the main content of Alphabet’s income statement. YouTube advertising revenue increased from around $ 3.5 billion in the third quarter to more than $ 5 billion, an increase of 28% year-on-year. Although advertising revenue is Alphabet’s main revenue, YouTube Music and YouTube premium members already have over 30 million paid subscribers. Hence, it can be a good source of increasing revenue.
Competition from Amazon.com Inc
Perhaps Amazon.com Inc’s biggest long-term risk to GOOG is voice search and other innovative ways of content and service searching. Amazon’s virtual assistant Alexa has a huge advantage. The CEO of Jeff Bezos uses huge capital behind his projects. As marketers shift their spending to the ever-growing Amazon.com platform and start looking for more profitable Amazon products than Google.
Moreover, the company is also gaining ground in the digital advertising market. In the cloud, Amazon Web Services is clearly the market leader, and Google Cloud ranks third after Amazon’s cloud and Azure. Jeff Bezos’ brutal opportunistic company is also investing time, energy, and resources in artificial intelligence. But due to the recovery in advertising revenue, the company’s recovery in the quarter was better than anyone expected. Hence, you can think of investing in Nasdaq GOOG even there are some huge competitors. Before investing, you can check its cash flow at https://www.webull.com/cash-flow/nasdaq-goog.
Disclaimer: The analysis information is for reference only and does not constitute an investment recommendation.