There are some companies in the world, which have got the opportunity to purchase GOOG and GOOGL stock (NASDAQ GOOGL) from Google. Both of them are ticker of Alphabet Inc., which is the holding company of Google. The company started offering these shares since 2004. Now the growth of the company has slowed down and because of this, an antitrust lawsuit has been filed against the company. This lawsuit can be a big threat to the company. People have started thinking whether the company will lose its popularity. The company provides many tech products to its clients and customers but still, there are chances for losing the popularity.
In 2015, Google made another company called Alphabet. The Alphabet company has used the ticker as GOOG and the company has acted as a proxy for the search giant Google. GOOG stock deals in digital advertising and it has dominated the market in spite of the presence of many competitors. Google sells the ads for every search made on its search engine but there are terms and conditions for these sales. Now people have also started searching through mobile devices and Android, introduced by Google, has covered up to 75% market. Besides all these, the company has also enhanced its hardware business and it is selling many products to its customers.
Advantages of buying GOOG stock
Because of covid-19 pandemic, the year 2020 was not good for many companies. The companies have to cut their advertising budget, which was not a good thing. The revenue of Alphabet Inc. decreased in the second quarter In order to increase its revenue, the company has to cut its traffic acquisition cost and this led to increase in the revenue in the third quarter. The investors again started investing in the company after the downfall of the revenue. This is the first advantage of GOOG stock.
The second advantage is that GOOG acted as a diversification investment. The company sells different ranges ofproducts, which include self-driving cars, YouTube, and many others. Artificial intelligence and voice search are other products of the company. YouTube is being used immensely on laptops as well as mobiles and this has increased advertising thus brought revenue to the company
Disadvantages of buying GOOG stock
Alphabet is worried about Amazon as it has started attacking the company in all aspects. Amazon has also started voice search, which can be a big blow to GOOG. Amazon has started providing the service of vice search through Amazon Alexa, which is a virtual assistant. Amazon has also started taking up the market of digital advertising and people have started searching various products on Amazon instead of Google. You can get more information from https://www.webull.com/newslist/nasdaq-googl.
Disclaimer: The analysis information is for reference only and does not constitute an investment recommendation.