GOOG Stock – More Mobile, More Money
GOOG is dominant in desktop search, but the future is in mobile — and Google is crushing it there, too.
The Android mobile operating system is a world-beater, grabbing global market share at every turn. That’s a positive trend for Google stock that will continue in next year and beyond.
At the same time, GOOG is never content to stand pat on the product front. Thanks to Google Glass, GOOG is already vying for the lead in the potentially hot new category of wearable computing. And GOOG is forever tweaking and updating search and maps to solidify their market-leading positions. Even Google’s social network Google Plus is starting to gain some traction.
Be forewarned however that when looking at relative valuation, Google stock is hardly on sale. The forward price-to-earnings multiple of 21 isn’t particularly rich for a stock with a long-term growth rate of 16% — but it is well above the five-year average for Google stock.
It’s also a concern that the GOOG stock price is rising faster than its growth prospects. Yes, Google deserves premium multiples, but that doesn’t mean you’re necessarily getting a bargain.