As the stock market has currently been going through its greatest runs, most investors are looking forward to all those safe stocks that can easily offer them better returns and that at least match with the broader market. According to reports, over the past few weeks, S&P Depository Receipts has approximately offered 25% returns and while that can be categorized as an admirable return, you might want to consider investing in Google which has a record of performing even better. While you keep choosing some other safe stocks, should you also consider including Google to add some momentum spice into your stock investment portfolio? Here are the reasons behind such an investment.
• Google is the czar of the online advertising market: As of September, 2012, Google has been the proud owner of the largest market share in internet advertisements, mobile advertising and search. Google has taken over Facebook with regards to online display ads and over time they’re getting more and more competitive and stronger in advertising. Although the growth rate of the online ad revenues have plunged during recent years, this is certainly an expanding business. With further improvements in the US economy, there will be improvements in the growth rate of Google stocks.
• Google is an official word in the dictionary: You will know that a particular company is dependable when the entire world is using the name of that company as a verb for searching the internet and you might even be surprised to know that Google is a word that has been included in the Merrian-Webster dictionary. Would you think twice before investing your dollars in the stocks of such a company? Google is one of the cornerstones of the internet and will remain so in the near future too.
• Android owns a 75% market share: According to IDC, the mobile OS of Google, which is called Android is gradually continuing to gain market share. Reports also suggest that 3 out of 4 smartphones that are shipped are run by Android which shows 93% growth year after year. This is a huge growth rate and is almost double to the growth rate of all the other smartphones. Although Android might not be classified as the darling of technology like iPhone and iOS, it has still captured a huge share of the market.
• The analysts are always positive about their stock: Google is covered by 35 analysts who enjoy a price target of $800 per share and this certainly shows that this is one of the most vital asset in the stock market. And, in a similar fashion to Apple in 2012, analysts are falling all over themselves in raising Google’s price targets, with $1000 now being bandied about.
But perhaps even more tellingly than all these, is a report released by CitiGroup showing that Google has surpassed Apple as the “darling” from both traditional funds and hedge funds. Ride it will momentum lasts.