This ability to plant itself in so many areas of the technological world not only keeps it relevant but gives it a distinct edge over its competitors. GOOGL stock is a good investment — and it looks to stay that way.
GOOGL Sees the Future as Now
One hallmark of a great company is not necessarily the ability to notice trends and act on them but to set the trends everyone else is looking to adopt. Take Google Glass, for example — a product that some consider a failure.
But detractors fail to see the product as Google’s foray into a technology — namely wearable devices — that is fast becoming popular. Last year might even be called the year of wearable technology with the introduction of Apple Inc. (NASDAQ:AAPL) and Google’s smartwatches.
And by the way, the strange-looking smart glasses that people sometimes scoff at were featured at the South by Southwest festival this year. It’s funny how even Google’s “failed” products have resonance in the tech world.
Still GOOGL isn’t drawing the line at wearable technology. The company is experimenting with everything from cars that drive themselves to fiber optic internet to artificial intelligence. This places Google in a great position once these technologies reach the masses.
Let’s Not Forget about Search
Although GOOGL has evolved into much more than a search engine company, search is the foundation it’s built on and still a significant source of its revenue through advertisement. And as you’d probably expect, Google has reigned as king of search for years.
However, in December GOOGL experienced the largest drop in search it’s seen since 2009, so there’s been talk about whether the company has lost its search mojo. Google’s share of the search market slipped from 79.3% to 72.3% when compared to the previous year.
What’s more, there’s been talk about the possibility of GOOGL losing more market share if Apple drops Google search as its default mobile browser. And just last year Mozilla chose Yahoo! Inc. (NASDAQ:YHOO) for its Firefox browser (though many opt for Google).
The good news for GOOGL is that even if Apple were to drop its search, the move could help the company grow. Google has to pay Apple 45% of the revenue it gets through Safari. But without ties to Apple, it would pay only 5% for searches that started at Google.com. And it’s estimated about half of Apple’s customers would migrate back to Google.
Google is one of a handful of tech companies with the brainpower and the financial resources to not only think ahead of the game but to design products the masses will clamor for in the days ahead. And the company still reigns as king of search, regardless of efforts by the competition to dethrone it.
Google also has the luxury of having developed a very loyal customer base, individuals who not only use GOOGL for one product or service but for several. This places GOOGL in a position that most other companies can only dream of being in.
As of this writing, Will Emerson did not hold a position in any of the aforementioned securities.
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