Fundamental analysis of Nasdaq GOOG

Malcom

The cornerstone of GOOG’s stock is digital advertising, which along with its competitor Facebook (FB) dominates a huge industry. These two companies control 70% of the US digital advertising market to advertise based on search results for specific terms and also operate with a huge advertising network, placing ads on third-party websites will reduce revenue. In the third quarter of 2020, Alphabet generated revenue of $ 38 billion. The figure shows Nasdaq GOOG at https://www.webull.com/quote/nasdaq-goog made an increase of around 15% over the same period last year. 

Most of the revenue comes from advertising revenue, which rose from around $ 34 billion over the same period last year to a little more than $ 37 billion. In fact, in the second quarter, Alphabet encountered an obstacle that shareholders never thought of.  Nasdaq GOOG revenue was falling for the first time on an annual basis. In the second quarter of 2020, Alphabet reported revenue of around $ 38 billion, lower than $ 38.9 billion for the same period last year although not a big loss, the fact that revenue is declining is a big red flag for investors.

Source of revenue of Nasdaq GOOG

In summary, these trends do not look good for Alphabet, nor do they inspire confidence in their ability to change the company’s profits soon. Amazon has been Google’s market leader in smart speakers and cloud computing for several years. So far, GOOG Pixel phones have been unable to remove the Apple (AAPL) iPhone from its height. The company even tried to use the hapless and basic the neglected Google+ which is basically a copy of social network finally stopped after seven years of turmoil. 

As mobile devices outperform desktops and become the world’s preferred search platform, Google’s Android operating system is becoming increasingly valuable. Android represents approximately 75% of the global market share, and Google is the default search engine for Android – this is the key moment in the antitrust case of the US government.

The most popular services of Nasdaq GOOG are YouTube, Gmail, etc. Google Play and Pixel phones also helped the company to add revenues. Moreover, Google Home smart speakers, Google Cloud, and the company’s growing hardware business are some of the big names that complement the bottom of the Alphabet outside the search engine. In fact, given the shortcomings of Macroeconomic Factors, these side businesses may soon become more important than ever. Hence, the fundamental of Nasdaq GOOG is really strong and you can invest in the company for the long term. I think the company can touch to $ 2000 in eighteen to twenty months. Before investing, you can check its cash flow at https://www.webull.com/cash-flow/nasdaq-goog

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