( current investment = ~1000 in GOOG and GOOGL )
I really like google due to two reasons: its “conglomerate-like” build, as well as its experimentation.
With major positions surrounding the tech industry from Google Search, to YouTube, to the Pixel Phone, to the Android OS, to the Google Nest, to Chromebooks, to Google Drive & Gmail and more! There’s so many different areas in the tech space which Google either conquers (in terms of Google Search which holds close to 85% of search engine use according to Statistica.
Google also owns the 2nd most used social media Youtube, according to Statistica. Youtube maintains its place as “the place to go for long-form video watching.” DIY, its on YouTube. You need to learn something? It’s on Youtube. They make most of their Youtube money through the advertising, yet they also make money through Youtube Premium and Youtube TV. YouTube Premium is able to profit off of content that millions make and just have to give a commission to the creators rather than using funds before making it like Netflix and other streamers must do for their content.
YouTube TV gives Google the ability to compete in the expanding streaming industry against giants such as Netflix and Disney. They have a built-out subscription model which collects revenue monthly through its users.
Google’s ownership of Android, as well as the Pixel phone hardware line gives them a vertical integration in order to have a more powerful stance over the abilities of their phones. This gives them more options for supply chain management and optimization as well as they don;t have to rely on another company for implementation of the hardware itself.
The Google Play Store is also one of the only competitors to the App Store. It generated 10.34 billion in JUST Q3 of Last year. Several million have used the store in order to install apps, as well as many creators prefer it to the app store, due to its more lax rules on app requirements.
Chromebooks as well as the Google Workspace are huge revenue-generating segments that intertwine Google with education (as kids in school are using Chromebooks and Google Classroom) as well as the professional world. While Chromebooks may not be extremely powerful machines, they address a market for the people who simply want a simple computer that they can complete simple online tasks with. Google sold roughly 30 million Chromebooks in 2022 alone, showing that demand is for sure still there.
Google has Google Workspace, a fierce competitor to Microsoft’s 365 (Office). While Microsoft does conquer this product type, Google does hold a fair amount of market share and recognition in its Google Workspace (G Suite) product.
Google is also working on Flutter: an open-source UI software development kit which is used to develop cross-platform applications for Android, iOS, Linux, macOS, Windows, Google Fuchsia, and the web from a single codebase.
Google also has several different speculative “moonshots” as they refer to them which furthers Google place as an “unconventional” company which can use its innovative edge to pass competitors and conquer the industries in which it involves itself with.
Hence, why I like the GOOG and GOOGL stock 🙂
