Google Inc (NASDAQ:GOOG)’s graph in
context with its stock price keeps shooting up and up. It has climbed more than
30% after July, when it was priced at $560. Speculations and theories are all
over the place about the company’s astonishing performance, but many have
stated that Google’s financial performance is the main reason for the surge in
its stock price.
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Other reasons for the soaring stock
are:
a. Google is still No.1 when it comes
to advertising and Facebook is nowhere close to it. Its search business is on
the rise like never before.
b. Google is making profits hand over
fist while cutting into Apple’s revenue.
c. Motorola is not a catastrophe as
expected.
d. Android is grabbing market shares
at others’ expense. Google’s new tablet has garnered good response and
Android-based phones are equally good when compared to Apple phones.
e. The company is coming up with
innovative and brilliant strategies under the tutelage of founder and new CEO
Larry Page.
Over the last 5 years, the cash flow
at Google has grown at a tremendous rate, far surpassing all expectations. Back
in 2007, the cash flow was $3billion and the stock traded for $700 for the very
first time. According to calculations, the amount this year should be around
$12 billion if not more. The achievement is commendable as Google continues to
experiment by investing in self-driving cars and wind power, which have no
relation to its core business.
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