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Wednesday, July 25, 2018

FANG Exposed - Part 3

Yesterday I broke down Facebook and today I will go through Alphabet (GOOGL).

CompanyFacebookAlphabetAmazonNetflix
Ticker SymbolFBGOOGLAMZNNFLX
ABCD
Earnings Per Share6.814337.23736.34292.3755
Price to Earnings Ratio30.9532.52284.1152.67
PE/Growth1.341.8913.152.78
Institutional Ownership71%78%56%77%
Gross Profit Margin86.04%57.41%37.77.%38.13.%
Long-Term Debt to Equity02.46120.59185.52
Return on Assets25.54%13.39%3.04%5.46%
Return on Equity28.79%16.84%11.86%28.09%

Where Facebook is on every smart device, the same can be said true for Google. Google owns Android which is on 70% of all phones and has a strong presence on Apple devices also. Google provides free services through apps ranging from maps to translation and has it's assistant built into everything. Google owns the best speaker not because of the sound. Google Home is the best speaker because of the integration of Google's Voice Assistant.

Google also owns Waymo which is projected to be huge by itself. It also owns Nest which has the best thermostat and now video door bell. Most importantly Google owns YouTube which is it's best performing section next to search. To double down on YouTube, Google owns YouTube TV which takes advantage of the growing space of cord cutters.

Based on all of this, you probably understand why institutional ownership is the highest for Google among the members of FANG. When looking at the numbers, the Earnings Per Share scream buy coupled with the low amount of debt the company carries.

Google partners with a number of companies including the largest retailer in the United States Walmart. Do they have a monopoly? I don't know, but can you make it a day without searching Google or using a Google product? I can't either, so it must be a buy.

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