Is Google a good investment in 2017?

Google is perhaps best known for being the search powerhouse. The company opened the doors for getting an infinite amount of info anywhere and anytime. People are “googling” tons of stuff every day, while teenagers are most likely abusing the Ctrl-Shift-N command in the Chrome browser. Regardless of the way folks around the globe utilize Google products, the company has certainly revolutionized the tech industry.

There is no need to praise Google further, as we all know that is fucking awesome. Instead, we would like to draw your attention to the Google stock investment.

Google brand is owned and operated by the parent company called Alphabet Inc. The largest shareholders of Alphabet include its co-founders Sergey Brin and Larry Page, David Drummond (Google chief legal officer) and a famous venture capitalist John Doerr. Indeed, the biggest stake in GOOGL belongs to the institutional investors like the Vanguard Group. Similar to Amazon, Google/Alphabet stock is currently worth $952. Furthermore, Google is the second largest company in the world in terms of market capitalization – $649.49 billion as of writing.  By the end of the year 2016, Google reported a stunning EPS figure of 27.85. It also generated over $90 billion in revenues for the previous fiscal year.

Investing in Google: IPO Time

In 2004, Google executives decided to bring the company public. They hired the underwriters from Morgan Stanley and Goldman Sachs to arrange the IPO. Google stock made a debut on NASDAQ with the price of $85. IPO instantly generated around $23 billion for Google’s market cap. Since IPO, Google stock substantially outperformed the NASDAQ composite index, a benchmark for the tech companies. Overall, Google stock has been steadily growing. It plunged only once from $357 in December 2007 to $131 in November 2009.

As the result of corporate restructuring, Alphabet Inc emerged as Google’s parent company in 2015. Nonetheless, these two names are often used interchangeably to mark the same old Google.

What will drive Google growth in the future?

As you can see, Google is fucking amazing and still remains a good buy.  Analysts value GOOGL as the growth stock. It also trades with the P/E ratio 34.46. Google is sitting on the huge pile of cash, as the company produces free cash flow of $7 billion each quarter. This shows that Google’s position in the market is strong and it may not fear any possible cash crunch. The company has been all the time actively reinvesting the majority of its retained earnings. This is definitely the sign of the long-term approach.

It’s just about time to invest in Google shares if you haven’t done so earlier. Although Google is primarily generating revenues through advertisements, it will also make significant earnings with its other projects.

As an example, Google/Alphabet is heavily investing in its X division. The latter is developing the futuristic projects, like self-driving cars. Another Alphabet’s company is biotech Calico. It aims to extend human life and develop effective cancer drugs. Moreover, we should mention that Alphabet is also developing its AI product with its subsidiary DeepMind.

Having said that, if you expect to collect monies in the short-term, then better speculate with a damn bitcoin. Google is definitely the very long-term stock to hold for the years to come.

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