Why people want to buy Google stock?
GOOG and GOOGL are the two popular stocks of Google and people can buy any of these shares. People having GOOGL shares have the right to vote while such a feature is not available with people having GOOG shares. The GOOG stock price is a little less than that of GOOGL stock price. Google has a holding company called Alphabet, which provides these shares. There are many reasons of purchasing these shares and some of them are as follows.
Founder is running the company
Larry Page is one of the founders of Alphabet company It has been estimated in the studies that if a company is run by its founder, the stock of that company performs very well.
Performance of the stock
The shares of the company have performed very well for the past ten years and in the S&P 500 rating, it has shown 251% return.
Shares perform very well
In 2019, the shares of class A and class C performed very well. In 2020, the performance grew up by up to 15% and the shares have risen due to the earnings of the second quarter. This rising has forced the people to purchase more shares.
Digital advertising market leader
The main giants in the field of digital marketing are Facebook and Google but Google is dominant because of its policies and strategies that it uses to attract more and more people and retain the existing ones. Facebook is second while Amazon is third in the field of digital marketing.
Market leader in search engine
Google has also dominated the search engine market of the United States. The company has dominated all the platforms that are used in digital marketing in the US. Google has also dominated the search engine market globally. Studies have shown that it has captured around 92% of the market in the month of August 2020.
The expectation of high earning
Studies have shown that Alphabet, the holding company of Google, will prosper in the future, as the earning will grow due to its shares. The rate of growth will be around 12% in the coming five years. The company has beaten the expectations of earnings and there are chances that these earnings will continue for a long time.
Gaining the market of cloud computing
Amazon and Microsoft have gained the market of cloud computing and now Google has become the third company in this market to provide its services. Google has captured 9.5% of the market and it is growing faster in this field
In all, it can be said that Google is growing in all the fields and its revenue will be beneficial for the shareholders. You can check more information like income statement at https://www.webull.com/income-statement/nasdaq-goog before investing.
Disclaimer: The analysis information is for reference only and does not constitute an investment recommendation.