No matter how advertising revenue changes, Google is firmly established as a global search site. The search giant controls more than 85% of the US market and more than 90% of the global market share. For now, Android can be used as a pretty good insurance policy to prevent other search companies from taking up a large share of mobile devices. What makes shareholders relieved, however, is that Google’s core business seems to be stabilizing. In addition to having a large search engine cow and an excellent brand, the second advantage of owning GOOG shares is the company’s diversified investment.
Its products range from driverless cars to YouTube, from artificial intelligence to cloud computing and voice search. The company recorded an increase of nearly 15% in revenue over the same period last year. Some promising areas have the potential to change the rules of the game and could open a new era of growth for GOOG shareholders.
The company focuses heavily on artificial intelligence and autonomous vehicle space. Alphabet’s subsidiary [Waymo] is already a leader in autonomous vehicles space. Moreover, the company’s investment in R&D in artificial intelligence has made it one of the best AI companies.
For many companies, the previous year was a difficult year. When funding is limited, the first thing companies need to do is cut advertising budgets. This is bad news for the world’s largest advertising platform.
Effects of coronavirus pandemic on Nasdaq GOOG
A line of items including Pixel and Google Play phones increased its revenue by more than 33% in the third quarter. That means these tech products gave revenue more than $ 5.0 billion. According to recent market researchers, Google Play apps and game downloads are especially powerful revenue because people who stay at home jump on their phones to spend time.
In the end, Google Cloud’s revenue reached more than $ 3.0 billion, an impressive more than 35% increase over the same period last year. Features like Google Play and other GOOG apps helped NASDAQ GOOG because people are forced to work remotely due to the global lockdown. This quarter, earnings were also improved by Cloud service.
Moreover, millions of companies are already using Alphabet G’s suite of services. Features like Gmail, Drive, chat helped many remote workers to complete work in a standard way. Even after stopping lockdown, millions of businesses will continue to use these services. Hence, you can see an increase in revenue of Nasdaq GOOG even after the end of the pandemic. However, we believe the revenue growth will be less than this year. You can check the Goog 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.