Google Stock or Alphabet Stock is a mammoth revenue earning company. In this Google stock analysis we will see how profitable google stock is?

Hello everybody today we’re going to be looking at google or their parent company alphabet now when you think about google this is what you think about this is what you see you see in your head the google search engine and this is obviously what google is famous for however their parent company alphabets own a lot of other companies and are a mammoth mammoth company

At the end of this video we’re going to be looking at the price of google and we’ll be looking at trading views so hang around for that the hundred largest companies in the world by market capitalization in 2022 biggest company in the world is apple followed by saudi arabian oil company followed by microsoft and followed by alphabet the owners of google what this

Chart tells us is the size of google it’s worth 1.5 billion according to this chart clearly it’s worth less than that due to the current market conditions but it just shows you the revenue model the cash flows how much money is flowing through this company and the profitability that this company is worth over one trillion us dollars now due to google’s size and due

To their share value they recently on the 15th of july 2022 did a stock split and what this means is that their shares were over 1 000 us dollars per share and retail investors predominantly could not afford to buy their stock you can buy percentages of their stock on certain platforms but generally you want to buy at least one share of that stock normal retail

Investor 1 000 us dollars or average is a lot of money so they probably are moving on to other stocks it’s just simply can’t afford to buy the stock so this is why google did the stock split and many other companies have also done of the stock splits such as tesla google parent company alphabet did a stock split of 20 to one for every one stock you had you then would

Have received 20 of the new stock but obviously the new stock is priced a lot lower google stock having a bit of ratio 21 both google and google shares are now trading at roughly 120 dollars as of the 90th of august 2022. it’s a lot lower than that now happens around 100 but we’re having a bit of price later but this really is for retail investors so not only can

Institutions buy their stock but retail investors can also buy their stock so earlier we talked about alphabet the parent company of google and the look at some of the biggest acquisitions that they’ve made the number one is multi-road mobility in 2012 where they spent 12.5 billion then this nest double click look at fitbit youtube in 2005 which clearly is one of

See also  How To Invest In Amazon And Earn Money in 2022 (For Beginners)

Their biggest revenue drivers people nowadays are moving away from reading web pages they’re looking more into youtube and actually listening and watching content so the youtube revenue is coming into google is huge and it will grow and grow and grow obviously youtube has some competitors in tech talk which is why youtube is doing now youtube shorts i noticed from

My channel for example people they want to flip through videos and get a lot of information very quickly and then moving down to waze htc admob and ita software so alphabet the parent company of google will continue these acquisitions and they will continue to grow as a company with all this revenue cash flow and subsequently profitability that they have so if we

Go over to symptom wall street and look at google or alphabet the parent company the list price at the moment is 98.74 and then market cap is 1.3 trillion us dollars alphabet inc provides various products and platforms in the united states europe the middle east africa and asia pacific canada and latin america so just a quick overview rewards trading at 60 below

Our estimate is fair value earnings are forecast to grow 13 per year earnings have grown 32 per year over the past five years trading at good value versus peer average price earnings ratio trading below are calculate their price to earnings ratio and analysts in good agreement that stock price will rise by 45 and there’s no risk detected for google from their

Risk checks so as an overview of this company financially the company looks very very strong so shareholders returns in the last seven days google’s down 3.9 over the last year google is down 30.6 which actually is a lot less than other companies from the tech sector the nasdaq has been obliterated really by this market downtown and a lot of companies are showing

Fifty percent plus corrections some even as high as 85 90 so the company was founded in 1998 it has a 174 000 employees which is massive and google has a pe ratio of 17.9 the latest earnings report issued was june 30th 2022 showed a gross margin of 57 and a net profit margin of 26 the revenue was 279 billion of a gross profit of 157 billion if we look at this net

Profit margin over these huge figures 278 billion us dollars they’re making 26 in net profit obviously that’s before tax the sums of money we’re talking about are just out of this world and you can see how this snowball effect for google works it will reinvest that money in development of their current products and they will also reinvest that money in buying and

Acquiring other companies and softwares so the snowball just keeps getting bigger and bigger and bigger and bigger and this company in my opinion will continue to grow into the future what is the fair price of google when looking at its future cash flows so according to simply wall street the current price of 98.74 us dollars is almost 60 percent undervalued and

See also  Bull Bay Harbour View Southern Coastal Highway Investment Project Section 1A OCT Update 2022

They think the fair value of google is 246.24 us dollars the potential opportunity of google at the moment during this market crash if you were to buy google stock now there’s more upside than there is downside you’re never really going to buy or sell bottoms and tops anybody who exactly sells a top or buys a bottom will claim that they’re the cleverest person in

The world you can use metrics and you can use charts but actually if there’s a lot of luck involved there it’s very rare that people buy bottoms and sell tops you just want to try and find that average in between where you’re happy and a lot of the times with myself i’m quite good at seeing tops i’m not very good at seeing the bottoms i get a bit impatient however

I do know that if it continues to go down i’ve bought it a lot less than what the top is so i can just hold it and wait for the price to recover hopefully so that’s just something to think about and not to put too much pressure on yourself about trying to buy exact bottoms or sell exact tops very hard to do and almost never happens of course you do not want to do

It the other way where you buy the top and you sell the bottom this is something that will lose you money very very quickly so analyst price targets the average one-year price target for google is 142.80 which is plus 45 from where we are now which is clearly very attractive according to the analysts and the analysts future growth forecast for the company are 12.9

And the forecast annual revenue growth is 11.4 so over the last five years google’s earnings have grown 32 per year financial position analysis short term they have 172.37 billion dollars worth of assets their liabilities are only 61.35 billion and over the long term their assets are 182.81 billion us dollars and they have liabilities of 38.41 billion us dollars so

Just looking at these figures you can see how financially healthy this company is and as far as debt is concerned google has more cash in its total debt and google’s debt is well covered by operating cash flow at 740 very good figure indeed google is not a dividend paying stock it is a growth stock in the last 12 months there’s been no insider buying or selling

According to simply wolf street the ownership breakdown institutions own 70 of google the general public owns 17.4 individual insider zone 12.5 percent and it’s a very interesting that institutions own more than the general public obviously google is in a lot of index funds due to its size due to its stability and due to the fact that over the past 10 years stock

See also  Foreign Direct Investment

Has performed extremely well so it’s not a surprise that the institutions are well into this stock at 70 percent now they’ve done the stock split and they’ve stocked more affordable general public might earn more shares into the future we will see dilution share shareholders have not been meaningfully diluted in the past year which is excellent we hate dilution on

This channel okay looking at google on the weekly this was at the time of the pandemic where it came down and hit the 200-week moving average it bounced off as 200-week moving average and then went on a ball run over the next couple of years and then it peaked out it’s actually had a double top approximately and it eats out it most things did in november 2021 and

Since then it’s come down up and down approximately 30 percent discount from its highs and it wouldn’t be surprising to me if it came down further and touched or retested this 200-week moving average at currently 92 us dollars so there could be some more pain however history tells us that it’s a lot better to buy this stock closer to this 200-week moving average

Than when it’s so far extended above it so look at the long term if you are a investor don’t just look at the short term because that’s how you fomo in and out of stocks i actually bought some more google recently i didn’t buy it here on all those i probably bought it around here 105 us dollars but i’m okay with that because i will hold it over the long term and

If it goes down i’m not going to panic i just see it as a temporary paper loss hopefully and i will hold it until it comes back into profit and then if they do to ever sell google stock it will be when it’s profitable not when it’s underwater you see the rsi topped out here it was massively overbought and this would have been where the top was price wise and since

Then it’s been on a bearish divergence follow this line down here could say that it’s now coming back to be on a bullish divergent what we see here is it’s just about neutral i would say at the moment it’s not oversold it countdown anymore it will be oversold it’s much better to buy a stock anywhere below 50 than it is anywhere above 50 and generally these are good times to buy

Transcribed from video
GOOGLE STOCK – IT'S ON SALE!!! By The Investor