Third Reason Why GOOGLE Is A Winning Stock.
In think I have been bitten by the “Google” bug. How so?
On 31 Aug 2023, I have put out 2 Google posts:
Google & Nvidia partnership. Click here! to read and give a “Like” after ok. Tks.
Google’s answer to Microsoft’s Co-pilot. Click here! to read & “Like” ok. Tks.
Today, I am sharing another.
Away from technical analysis etc.. this “inspirational” post is something else.
Premium Stock Differentiation
In the tightest definition, a premium stock should be able to:
Weather dramatic changes in the global economy.
Weather its specific target markets.
$Alphabet(GOOG)$ - parent company of online services giant Google more than meet & serve the abovementioned roles for many years to come.
It is particularly “exciting” to witness what Alphabet will be able to achieve with artificial intelligence (AI) in the coming decade.
Flexibility at its best !
It is easy to mistake Alphabet for a one-trick pony.
However, nothing could be further from the truth for Alphabet.
This company’s DNA was built to change with the times.
Yes, it is true that “Services” under Google accounts for the lion's share of Alphabet's revenue.
In Q2 2023 quarterly earnings report, “Services” contributed 89% to the revenue’s total.
Good news is Alphabet is more than just its (a) Online search and (b) Advertising. In fact, even Google division includes alternative revenue streams.
The “Google” name / label is a valuable brand equity.
It makes business & marketing sense for Alphabet to attach it to a variety of internet-based products and services.
At the same time, Alphabet the parent company knows the need to be flexible and come up with new brands when the service at hand doesn't quite fit the Google's profile.
Case in point:
1) Health technology operation formerly known as “Google Life Sciences” has been known as Verily since 2015.
In August 2021, Verily made its first acquisition. It was a deal with clinical trial management system developer SignalPath.
Verily has also invested in a number of digital health and health tech startups.
This included (a) AI voice tool Syllable, (b) biotech company EQRx and (c) biomanufacturing startup Culture Biosciences.
Google co-founder Sergey Brin recently said that Verily is profitable, thanks to a plethora of high-profile collaborations and a successful health insurance service (Granular).
Granular a subsidiary of Verily, provides stop-loss coverage to employers.
In 2021, Verily’s revenue more than doubled in returns and it is not difficult to guess which subsidiary contributed the lion’s share in Verily’s growth.
According to tech news site - The Verge, Alphabet's health insurance business grew nearly sixfold last year (2022).
The Verge had attributed Granular's success on its access to Google's data capabilities or simply that it provides better policy premium rates,
2) Calico is Alphabet's medical research arm, targeting a deeper understanding of human aging.
Its mission is to harness advanced technologies to increase our understanding of the biology that controls lifespan.
Like Verily, Calico runs many research projects together with top-shelf biotech and medical science companies.
3) Lastly, Google’s self-driving vehicle business is none other than “Waymo”.
It has been pushing its own frontiers in fields of (a) autonomous driving, (b) AI-powered sensor analysis, and (c) automated fleet management since 2009.
Do you agree that none of the above 3 projects fit naturally in the Google brand?
The deliberate attempt by Alphabet’s CFO (Ruth Porat) enables Alphabet, the company to pursue next-generation research ideas in any field or discipline - without confusing consumers with a diluted Google brand.
Google's evolution - what will it evolve into?
Alphabet is ready to rock its boat and shift its business focus, together with evolving consumer tastes and business trends.
Though still in its preliminary stage, it looks like Alphabet is prepared to swing for some new fences right about now.
For a start, Google’s CFO Ruth Porat has a new job, and it's all about driving Alphabet's non-Google businesses to new heights.
On 25 Jul 2023, it was announced that Ruth Porat will step down as Alphabet 's CFO, having helmed the role since 2015.
She was assuming the new role as president & chief investment officer (CIO).
Ms Porat had been instrumental in Alphabet’s rebranding and reorganization.
She is bringing that magic touch and deep business insight to her new role as president and CIO.
Put it bluntly, in her new capacity, she will be in-charge of steering Alphabet's future investments.
Her new duties include hands-on control of the "other bets" division, including Calico, Verily, and Waymo.
She' is taking the rein and the navigation system is set to a deeper engagement with projects not named Google.
It's a logical next step for both former CFO and the “company” Alphabet, confirming again the company's game-changing flexibility.
How I See It?
When it comes to investing, there’s the wise words of “do not put all your eggs in one basket”.
Alphabet has the foresight to dabble in different project/s that are vastly non-IT driving.
No doubt that jumping into the deep end of the pool is a bit of a risk.
However, it is a calculated risk that Google could afford to stomach while it is still financially strong.
At most it would lose the investment put in.
However, if the “special interest project” proves to be a hit, the many “happy endings” (eg. sell off, spin off, IPO etc…) might just be what the doctor order.
Do you think Google is doing the right thing to diversify its business?
Do you think Google will come out “top”; every inch a winner by end of 2023?
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The best is Google didn’t drop much in the last few weeks!!!
Great ariticle, would you like to share it?
This feels like a short term top in Google and overall market. I expect the market to fall hard the next few months as inflation battle heats up, deflation is RE kicks in, and Profit Taking from a 80% record breaking year.
YouTube is the biggest streaming service, Google is the leader in search, NFL ticket will have a big impact this quarter, google is positioned well to lead AI over Web. Do you need any further reasons to buy?
I saw a shooting star pattern appear at the top of the uptrend, and a bearish confirmation candle with a lot of force. Although the open price of the confirmation candle was quite high, the close price was very low. I believe that Alphabet stock will decline in the next sessions.
Would you consider "Follow me" and get first hand read of my Daily new posts? Thanks!). Tks!
Googl, Amzn, Msft could be next $3 trillion stocks due to AI.
sell at $137 to target $134-$131. Bearish week
Google has a problem sure they know it .in fact G has many peoblems
Google earnings for next quarter is 45 days away, on Oct 23rd.
Google is a solid stock, stable and rising steadily.