NetFlix Stock Price Forecast It was Mad Money’s Jim Cramer…
Google Stock Price Forecast
Google’s enjoyed strong price growth up until March much like most Silicon Valley Stocks. Then came the Corona Virus shutdown which has dimmed the stock market forecast for 2020.
Google’s ad revenue has taken a big with travel sector decimation and overall business advertising withdrawal. It’s Youtube advertising and new gaming sector and other profit centers may alleviate the losses.
New products released or planned and great profit reports pushed Alphabet stock price to a record high of $1,479.33. Google’s ambitions are unbounded, yet recent earnings report deviations might suggest selling your Google stock.
I didn’t realize how right that would be when originally posted. But no one could see the Corona Virus coming, and yet experts did speak of the next recession being caused by something unusual and unexpected. I wonder if pandemic viruses will ever be this kind of threat again?
Google’s stock price has plummeted $500 or one third of its value in the last month. For smart investors, this actually could be an opportunity to buy the dip. But we’re not quite out of this Corona Virus crash. Investors will likely come back to Google Alphabet once the cases of Covid 19 begin to recede. By August this stock will race back up again.
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.
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 companies 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 fitbit are testing the tolerance of Federal monopoly regulators. Regardless, the company keeps innovating in the face of regulation and competition.
King of the Technology Stocks?
The company’s culture of controlled progress, innovation, optimism, targeted consumer products, and advanced technology has inspired thousands of startups and global corporations. Its extensive ventures have paid off well for investors.
“We had a strong 2018 with total revenues of $136.8 billion, up 23% over 2017 For the fourth quarter, revenues of $39.3 billion were up 22% year-on-year. US revenues were $18.7 billion, up 21% year-over-year. EMEA revenues were $12.4 billion, up 20% year-over-year” from Google’s chief financial officer, during investor meeting in Motley Fool.
No one can argue the historic success of Google / Alphabet. It’s easy to predict their annual success and growing returns, but is Google better than similar NASDAQ stocks such as Facebook, Netflix or Amazon?
The big question now is whether the FAANG companies and Google can excel in the post Free Trade era and in lieu of $5 billion fines from Europe and other locales for monopoly and data protection issues. Europe it appears, wants the big American monopolies out of their jurisdiction. And with US China trade wars deepening, Alphabet won’t find much growth in Asia (Baidu).
Stock Price Timeline – Google Alphabet
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?
Big Year Ahead for Google/Facebook/Amazon
The FAANG stocks as a whole are expected to thrive. It’s Amazon and Google that look the best. And the 2021 forecast is positive for most economists. After this first half is through we’ll return to the upward march. When digital ad spending climbs, as expected, and only 2 companies currently control the industry, you can expect each to excel. Check out the Facebook stock forecast and the Amazon stock forecast.
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.
Google Releases 4th Quarter Earnings
Despite an impressive quarterly fourth-quarter net income of $8.95 billion, or $12.77 a share, compared with losses of $3.02 billion, or $4.35 a share, in the year-ago period, Google’s stock price fell. It currently sits at just under $1100 per share and is rated as one of the best stocks. The 4th quarter results were benefited by a $1.3 billion gain from debt security. Otherwise, the results were as forecast by analysts.
Still, the company’s revenue rose to $39.28 billion from $32.32 billion in the last quarter of 2017. Alphabet trades for about 34 times adjusted earnings, and EPS grew 15% in 2017. One concern for investors is rising costs.
Yet Google is a well managed, excessively large and well financed operation, whose monopoly gives it an ongoing advantage in fending off upstarts, who will never pass the kill zone. Google is highly entwined with India and there is little concern that the fast growing Indian economy would block Google.
In my humble opinion, Google needs to work more closely with American businesses to create higher quality tech products. The gamble with autonomous cars is risky. It’s estimated that autonomous vehicles on our roadways are a long way off. And the potential conflicts with human drivers and motorcycle riders who want to continue driving hasn’t even hit the political fan as yet.
Google Alphabet Stock Price History
This chart from Longforecast sees Google doing particularly well in the years ahead.
Google Stock Forecast By Month from LongForecast.
What do the Guru Stock Analysts Think?
At Cowen, John Blackledge has an Outperform rating on the stock. He lowered his price target slightly, to $1,390 from $1,420, as he cut his revenue forecasts for the next five years. “We think earnings and evidence that recent product innovations have impacted financials could serve as a driver for the stock,” Blackledge wrote. — From Barron’s Report.
Analysts Recommendation: Most Guru Focus analysts give GOOG stock the thumbs down. They’ve got a couple of warnings out and one might be a debt problem.
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 is solid and the record S&P might well be followed by record levels for the Russell 2000 as well.
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