Google Stock Price Outlook
Google’s stock price is one that you wouldn’t be so volatile given it’s one of the largest companies in the world. And it’s potential profitability is enormous.
Unlike Apple, Google isn’t as constrained by offshore physical product manufacturing, trade threats and the like. As economic cycles pass, GOOG retains its inherent value and as we’ve seen with Pixel phones, Cloud services, and YouTube ads.
It’s still one of the most important stocks on the S&P and NASDAQ. and one of the best hedges against economic swings and stock market crashes. Most hedge fund managers are loaded up on Alphabet stock because it’s safe and its revenue streams are diversified via advertising, cloud services, and hardware devices.
The chart shows the company’s stock price has fallen significantly yet is it at a low, buy the dip, point where it makes a really smart investment for anyone focused on the 5 year or 10 year time frame? I would say buying Alphabet GOOG stock is the greatest, simplest, worry free safest, and high potential stock available.
If you’re focused on the 2023 2024 2025 outlook, then GOOG is likely to meet your investment requirements.
Outstanding Revenue Performance, Still Growing
The company reported its Q4 2022 revenue rose $1 billion vs Q4 of 2021 to hit $76 Billion. Their full year 2022 revenue came in $282.9 billion up $24.6 billion from 2021. Price/earnings ratio came in at 24.46 which is high, but not atypical for tech giants. 2022 was not a good year for the stock market or Google which saw it’s net income drop $16 Billion to $59.97 Billion for 2022. Keep in mind their full year’s earnings for 2019 was $46 Billion.
Sure Amazon and Facebook compete in the ad space, and Apple is a formidable opponent in the device market, but Google is masterful at establishing dominance and monopoly. No government is willing to take them down a notch, so the outlook is only limited by the economic recovery.
With$5.3 Trillion in the money markets waiting to get out of that low return environment amidst banking woes, an economic return would see Google’s revenues soar. These are the macroeconomic signals that should outweigh anything else. The company laid off 12,000 workers showing it is willing and able to adjust and trim where necessary.
The company’s ease in using technology and its bevy of powerful products and innovating with new products and markets gives investors the confidence that this company is infinitely able to adjust to whatever come what may. They even earned $2 billion on hedging strategies. Just a brilliant group at Google. While other tech companies suffer in the high rate environment, cash rich Google ($117 Billion in cash and liquid assets) can fund most of its ventures. And because of the self-financing, it’s less likely to venture into craziness like Facebook did with Metaverse.
1st Quarter Revenue 2023
As the chart from Statista shows, Google hasn’t lost its stay at home pandemic mojo. In Q1 2023, Google’s revenue amounted to over 69.4 billion U.S. dollars, up from the 67.2 billion U.S. dollars in Q1 2022.
Google Revenue/Earnings Report
Google Stock: Google’s Sources of Revenue
Alphabet is tough to keep up with. There’s always something new on the go. Google’s been releasing some industry leading products of late, the most recent called Google Stadia. Google wants a piece of the $130 Billion video game market and be the Netflix of video games.
However, it is there Adsense advertiser program, and Youtube platform that are bringing in the big bucks. Young consumers are using Youtube extensively, and those migrating away from Cable television are watching a variety of Youtube entertainment options (Youtube Premium).
This gaming platform uses the Youtube service to allow game players to pay to play games. Some suggest it is a game-breaker, but others are doubtful of the business model. It’s up against formidable competition.
Google also announced Google Checking which allows users to pay for purchases and subscriptions via their bank accounts. They inked a deal with CitiGroup and intend to link it to Google Pay. It will compete with rival Apple’s Apple Pay.
The company’s other new improvements include Nest Mini smart home system, Pixel 4 Smartphones, and Nest Wifi, have arrived too.
The company’s foray into medical data, and its purchase of the popular company fitness electronics company Fitbit, are testing the tolerance of Federal monopoly regulators. Regardless, the company keeps innovating in the face of regulation and competition.
How Google Fare’s Against the Other Faangs?
See more about the Faang stock forecast and the best stock picks for 2020. Are Google, and Apple and Amazon ready to rocket if a trade deal is approved? Will tariff reductions and economic surge mean big profits for Google and Apple in 2020?
But Google is such a successful, powerful enterprise that you can expect it to win at anything from advertising to cloud to video to artificial intelligence.
What investors might want to consider as Google’s real issues are the global political environment (negative), competition (Facebook and Amazon could invade their markets) and the future health of the US economy (excellent). Will Google face GDPR regulations and find themselves handcuffed to collect and use user data? Will anything threaten the advertising duopoly of Facebook and Google?
How Does Google Make Money?
Google’s primary revenue source is advertising, and its flagship product Google.com search is the king pin. Alphabet is more of a proxy name for Google’s search engine which controls about 80% of the web search market.
Google makes revenue from a growing list of phenomenal products: Google Pixel phones, Adsense, Chrome laptops, Youtube premium subscriptions, Android operating system, Google home automation, cloud computing, and Google play subscriptions.
The recent and long expected failure of Google+ as a social media platform is disappointing since it signifies Facebook has completely won in that arena.
In my humble opinion, Google needs to work more closely with American businesses to create higher quality tech products in the US. The gamble with autonomous cars is risky against the very popular Tesla. It’s estimated that autonomous vehicles on our roadways are a long way off. And the the legal disputes and potential conflicts with human drivers and motorcycle riders who want to continue driving hasn’t even hit the political fan as yet. See more on the Tesla stock price forecast.
Google Stock: Analyst Buy Recommendations
Google Stock Forecast By Month from LongForecast
Longforecast sees the potential of Google. They forecast 119% stock price growth within just 3 years.
And What do the GuruFocus Stock Analysts Think?
Analysts Recommendation: Most Guru Focus analysts give the thumbs up on GOOG stock. Definitely head over to Gurufocus for the comprehensive coverage of that stock and the performance of so many analysts who have purchased GOOG stock.
This report is a snapshot of performance and analyst reports and is not a recommendation. Please refer to many sources and detailed analyst reports before making your buy decisions. It should be a good year for stocks after the recent political turmoil. The US economy forecast for 2024 is better than the experts pessimistic outlooks.
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