Google Stock on the Rise
Google stock has increased more than 4 percent, surpassing the eight hundred dollar per share mark. There were already high hopes, even before the stock declarations, that Google would improve both their bottom and top estimates. The total revenue of Google has reached over twenty million dollars, $21.5 to be precise.
The growth rate of Google continues to increase equally to its competitors despite it leading the industry. The combined revenue of Google was 21%. Google is able to keep increasing its stock due to constantly dipping its toes into new technology markets. The Driverless Car venture is one of many different Google investments including Google Fibre, Verily, ad Nest that has helped to create huge excitement. The excitement surrounded Google’s innovation has subsequently caused investors to contribute confidently knowing that their money is in the hands of one of the World’s safest growing companies.
Innovative Technology Leads The Way
Google’s new innovative technology investments have been the biggest contributor to its growth. The second quarter saw a 150% increase to $185million for Google’s revenue from other ‘non-central’ investment areas. However these ‘non central’ areas also saw an increased loss to just over eight hundred and fifty million.
Confidence has been added to some of Google’s non central investments due to the announcements of Tesla CEO Elon Musk. A future of autonomous cars and vehicles is becoming evidently more likely due to recent announcements in advancements in related topics. Driverless cars are not only expected to impact the car industry but the whole transportation industry as phase 3 of Elon Musk’s plan dictates the intention to create driverless buses as well as lorries. The driverless car market is competitive. However Google have the quirk that their driverless car won’t even have a steering wheel and is designed to be one hundred percent independent of a driver. The reasoning behind this according to Ruth Porat, a leading Google financial advisor, is: “We’re focused on fully-autonomous cars because in early testing we saw the risk of depending on drivers to remain engaged once you give them the option to switch off.” (Source: “Alphabet Q2 2015 Results – Earnings Call Transcript,” Seeking Alpha, July 28, 2016.)
Monetization at Google is still improving. Despite already being an established, internet giant Google is still able to expand into different markets and create new ways of monetizing its products. Google’s advertising income is forever increasing as sponsored ads become more and more common on Google searches. The revenue produced by these searches has increased to just fewer than 20% from its previous year-over-year. Paid clicks are also a good source of income for Google and the market leader has seen an increase of approximately 30% in income respectively.
Google stock is increasing year on year due to its ability to delve into new industries and monetize current products is making it a safe bet in the stock market. Investor’s heads are turning and even the most dubious internet investors are getting ready to make their move.