As one of the most famous brands in the world, Google plays an important role in our daily lives. Last month, the tech giant held a 20:1 split of its stock and shortly thereafter released results for the quarter that fell short of expectations.
Despite weak earnings, the report gave investors a reason to remain optimistic, and so Google’s share price began to rebound during the following trading sessions. During the year, Google’s stock price has fallen by more than 20%. But what does its future outlook look like?
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GOOGL stock price today: Why buy Google stock?
Investing in the stock market is always risky, but as we stand on the cusp of a potential recession, this statement is more relevant than ever. In times of uncertainty, investors tend to pick stocks that are defensive, i.e., historically more resilient to economic downturns.
Typically, technology stocks are not considered as such. A small number of large technology stocks have a rather unique combination of both defensive and aggressive characteristics. This indicates that they couldemerge from the recession unscathed and then reap the benefits of an economic recovery. Alphabet, Google’s parent company, is one such stock.
Google is practically a monopoly in the global search engine market, with a share of more than 90 percent. This dominance gives Google a significant influence on pricing in advertising, through which it generates the vast majority of its revenue. It also has a positive effect on GOOGL stock price today.
GOOG stock price today – invest in a reliable company
With the economic downturn, advertising budgets are inevitably shrinking. But according to Alphabet’s latest quarterly report, advertising revenue grew 11.6% year over year, even though many of its competitors were much less fortunate in this area. This shows that search engines are one of the most efficient places to place ads and, therefore, are the least affected by ad budget cuts.
The strength of Google’s advertising business, as well as its potential protection of the company during the downturn, should be some of the keys to its success during the economic upturn, when advertising budgets begin to increase again.
Another advantage Alphabet has for its investors is its strong financial position. According to recent results, Google has nearly $125 billion in cash, cash equivalents and marketable securities, more than enough to weather any potential economic downturn. Keep in mind that GOOG after hours stock prices may differ from the day’s prices.
Conclusions
Google stock is an interesting investment option. However, it is difficult to predict exactly how individual stocks will react to economic uncertainty, and anyone considering buying Google stock should be prepared for volatility in the coming months.
According to analysts polled by TipRanks, 30 of them currently recommend buying Google stock, 2 recommend holding and 0 recommend selling. The highest target price for Google stock is $186 and the lowest is $113.
What’s the price of GOOGL stock? The average target price for Google stock was $142.84, an increase of more than 25% from current levels. You can find the current price of many companies’ stocks on the letizo news site.
