Alphabet Inc. is a corporation that provides a suite of products related to information technology and operating systems. This corporation is also an investor in many Internet companies, including Google. In this article we will discuss the Alphabet Inc. stock investment strategy and consider whether it is a good investment or not.
We will begin with Alphabet’s core business of providing search technology to Internet websites. They have a very large market share in this industry, having purchased many of the top search engine companies including Google. What makes their portfolio so impressive is that they have spent a significant amount of money on building a large customer base through acquisitions and investment in newer, more innovative technologies. Many of these technologies are actually being deployed by other companies for their own businesses. We will discuss GOOG stock price as an illustration of how they make investments.
Their most recent acquisition was the purchase of Sideline Internet, a web bookmarking site focused on social media. The acquisition of this company gives them access to a fast growing but niche market. For Alphabet, this represents an investment in a rapidly expanding sector that should see continued growth. Alphabet is also one of only a few companies to hold a majority of its shares in a technology company that is seeing growth. The fact that they have not gone public has not been a hindrance in their ability to continue making acquisitions and growing their business.
Alphabet’s other business endeavors include being involved in the manufacturing of television and advertising channels for digital and cable services. Their other product, the Android mobile operating system, is still in the early stages of development. While the Android system is seen as having tremendous growth potential, the stock price is lower than some of the companies they have invested in. We believe Alphabet Inc. would be wise to put some of their growth potential into the profitable digital media sector.
Alphabet has not invested in any other businesses that directly compete with them or ones where they believe their product could do well. They are primarily focused on expanding their range of products and services. Their other product, the smartphone operating system is being developed by a separate company. If the smartphone does not have an advantage over the other Android products, then it will not be successful. Alphabet could find its equity prices falling if they were to put their full growth potential back into their core product range.
Alphabet Inc. is one of few companies that has a clear plan for building their business future. Their board of directors is cautious about making major acquisitions and they do not like taking risks in the stock market. This cautious strategy has been helpful for the company in being able to ride out the economic recession. If they can continue to manage their growth effectively, then we believe the company will be successful as it continues to expand into new markets. You can check the GOOG income statement at https://www.webull.com/income-statement/nasdaq-goog before stock trading.