Tag Archives: Alphabet

The Search giant can soar thanks to a growing number of searches and YouTube

I have been watching Google since day one. The stock price was around $50 in 2004, but take a look at it now. The stock price is nearly $800! What a ride since 2004, and it doesn`t want to stop any time soon.

The name Google is still there and people are familiar with that name, but for traders, the new name is Alphabet Inc. A newly founded holding company for the Google group of businesses. Under the new operating structure, its main Google business will include search, ads, maps, apps, YouTube and Android to name a few.

Analysts have upgraded their price target to $930 per share.

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In addition to YouTube and Play, they will benefit from Enhanced Campaigns and other products like app install ads and higher ad loads on mobile and desktop SERP. Cloud on top of that can make greater and greater contributions in the future.

The internet behemoth came out with incredible Q4 2015 results. Earnings per share increased 26% and their sales went up 19%. And we are not talking about a small-cap company. We are talking about a company with a market cap of $538 billion! Can you belive that?

The fourth quarter release was the first to break out Alphabet`s Other Bets division, made up of self-driving cars, health care, Google-X and smart homes, among other things, which grew 37% YoY. In addition to YouTube and Play, search and programmatic advertising is the drivers for Alphabet.

The stock market had a terrible start of the year and investors are not expecting a good first quarter. According to FactSet, Companies in the S&P500 are projected to report a 9,1% decline in first quarter profits. That would be the worst YoY decline since 2009.

But some companies will continue to rise up, and I think Alphabet is one of them.

Alphabet can beat-the-Street with positive earnings results on Thursday. The Search giant can soar thanks to a growing number of searches on mobile devices and the continued success of YouTube, plus keeping a lid on costs.

The Estimize consensus calls for EPS of $8,03 compared to the Streets expectation for $7,92. Revenue are estimated to come in at $16,612 billion vs. the sell-sides $16,499 billion. Since last report, estimates have only increased by 2% on the bottom-line and 1% on the top. Compared to the same period last year this represents a projected 22% for EPS and 19% for revenues.

Alphabet Inc will report on April 21, after the bell.

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Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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Google will deliver milk to your door

Google are expanding and  have a new strategy to make a huge impact into customers daily life. They want to deliver milk on your door. Yes, milk and other perishable goods like meat, tomatoes, bread and eggs, and the first delivery starts next Wednesday.

Google have become the worlds most valuable company, and earn money on ads, internet-connected thermostats and high-speed service. They have the worlds best search engine and almost everybody in the world can use the site, but what about the grocery delivery?

That`s not so easy as a search engine and of course it will be impossible to deliver to the whole world, so they will start in Los Angeles and parts of San Francisco. This delivery service is part of Google Express, which partners with retailers in some U.S cities.

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We know that Wal-Mart will expand their e-commerce business and Amazon Fresh is already in the same business and have taken a great stake in the market. Other competitors are Fresh Direct, Safeway and Instacart Express, but this business is complicated and not so easy.

Many of the companies are struggling to earn money because the margins are too small with about 2% on grocery sales. In addition to low profit margin you have high delivery costs and sometimes more expensive food.

Google said they will take advantage of holding inventory in costly warehouses and keep the cost down by making deliveries from there. Amazon deliver from their own. Online grocery shopping is a $11 billion business with 9,6% annual expected growth, but the margins are low.

Annual membership for Google Express will cost $95 and fresh-food deliveries will cost $2,99 per order. Non-Express members will pay $4,99 an order.  They also have bold goal which is to deliver within two hours.

Google will collaborate with Costco Wholesale Corp, Whole Foods Market and Smart & Final Stores in San Francisco. Furthermore, they will deliver from Smart & Final, Costco and upscale grocer Vincente Foods in Los Angeles.

A good friend of mine started a similar project 18 years ago. He is innovative and smart, but the concept was short-lived and he lost millions. It`s not because the concept was bad, but I think he was way to early in the market.

The same happened with Webvan Group. They went bankruptcy in 2001 and lost nearly one billion. Timing is important, so Google are launching Google Express in right time I think. So is it with my friend. He started with the same project last year.

Google Express has been around for a while, and this is a coming competitor to Amazon. You can order from many stores on Google Express, like Staples, Toys R Us, Target and Barnes & Noble to name a few. They deliver in Manhattan, Chicago, San Jose, Boston and Washington DC.

Google Express is a pilot project and if it works in Los Angeles and San Francisco, they will expand to other cities near you.

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Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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Alphabet can be the largest company very soon

The most valuable company in terms of market capitalization is Apple with a market cap of 523,90. Alphabet`s market cap is 508,76, which means there is only 15,14 that separates them, which means Alphabet can be the largest company very soon.

66% of Apples sales comes from iPhone and Apples new release for iPhone 7 is in September. That is a very long time to wait. Before that, the sales can slow down, and so can the stock. It can go in the other direction for Alphabet.

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Alphabet will come out with a new report after the bell close today. Wall Street`s estimates for EPS is expected to come in at $8,17, with revenue of $16,9B.

Last summer, they changed the name to Alphabet Inc, but Google will continue as the company`s legacy business and include core properties such as search and advertising. Alphabet will continue to invest in self-driving cars, health care, Google-X and smart homes.

So, this will be the first quarter to see how both segments are doing it. Alphabet`s shares rose 46% last year after cost cutting initiatives and a lot of reorganizing. We will probably hear more about that later today.

Alphabet is focusing on innovation and growth and their search division has contributed to the recent robust growth. They introduced YouTube Red and will continue with acquisitions. They succeeded with their strategic mobile initiatives, so it should be a good quarter for Alphabet (GOOGL).

Alphabet can be the largest company very soon.

 

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Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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Alphabet Inc near all-time high

I remember the tech boom in the late 90`s. It was so many great tech companies and we all knew that this was the future. Investors were buying tech stocks with both hands, and we all know the results; A BIG FAT Bubble.

We can see some similar things going on today. Twitter was a hype when they went public in 2013 at a share price of $26. Investors liked the stock and it soared to about $75, but it all stopped there. Wednesday this week, Twitter traded at an all time low at $15.

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Twitter is not alone in this bubble club right now. Many other tech stocks has suffered lately and I think there is different reasons for that. The main reason for the smaller tech companies is easy money because of the rock-bottom interest rates.

Together with inflated tech stock prices we can also see sky-high Silicon Valley real estate prices and rents. Just like we saw in the late 90`s tech boom.

BlackRock slashed its valuation on Snapchat by 24% last year, while Fidelity slashed its valuation on Dropbox by 31%. So things are about to change. Easy money will not be so easy now, which means it will be more difficult for many tech start-ups.

But some tech companies are still going strong.

 

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One of my favorite stock since 2005, are trading higher on friday. Alphabet Inc (GOOG) is up +2,59% on friday, trading at 745,46. EPS for Alphabet Inc is 21,26 with a market cap of 493,21 Billion.

Alphabet Inc was a big Monster last year, adding nearly 47% in 2015 and traded just below $800 in late December at an all-time high!

It is revealed that Google, in 2014, had paid Apple a sum of $1 billion in order to keep their search bar on the iPhone. Google obviously understand how important it is to have their own operative system on Apple`s iPhone.

Alphabet Inc is a collection of companies like Calico, Google`s health and longevity effort; Nest its connected home business; Fiber, its gigabit internet arm; and its investment divisions such as Google Ventures and Google Capital, and incubator projects, such as Google X.

Many investors have a buy rating with a target price of $850. Others up to $900. I look forward to Apple`s quarterly earnings report next Tuesday, and Alphabet Inc will report on February 1, 2016.

Shareholders are holding their breath to see if today`s rallies will continue.

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Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

 

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Twitter at record low on Wednesday

It seems like investors have lost all faith in Twitter. A stock that has plummeted so far in 2016. A bad start of the year for CEO Jack Dorsay. Both of his company’s (Square and Twitter) have plummeted.

This is exactly what I have talked about recently. Twitter need a change, and maybe Steve Ballmer is the man? He have a great stake in Twitter and I assume he is not buying into Twitter without knowing something? Or does he have a great idea?

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(Picture: Twitter in a bubble)

 

Because Twitter have a great opportunity, but need to change the business model. Im not gonna reveal any secrets about that right now, because my ideas is not for free. But look at the stock today (Wednesday). Its up 4,19%. What`s going on?

Global stocks tumbled on Wednesday, and Twitter plunged more than 7% today and hit a 52 week low at $15,48. This is the lowest ever! A stock that started the first trading day on the New York Stock Exchange in November 2013 at $26.

Twitter bounced on Wednesday because there is a lot of rumors out there. A takeover rumor.

I have earlier talked about a possible Facebook takeover because they are both great mini-bloggers, but other may be interested. What about Alphabet? Or Ingram? Robert Murdock has denied any takeover for his News Corp.

Investors are disappointed because User Growth and product development has failed. It will be an easy shortcut to join other social media companies, but if they have some ideas to make it on their own, I think they will have a long way back up again.

Mr. Jack Dorsey has a 3,2% stake in Twitter. A company with a market cap of 11,3 Billion, and an Earning per share of -0,86.

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Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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