Alphabet, Inc. ( GOOG) has a price upside of 124% and its stock due to increased internet usage by 18%. Covid-19 and staying at home or search usage in Google is up. People are online more than ever nowadays. Google relies heavily on advertising and advertising is what is growing their Market. We look at strong Revenue growth of about 24% moving forward annually due to emerging AV technologies rising cloud adoption technology which are non-ad segments.
Google and Facebook (FB) have about 70% of market share for advertising. 70% of Googles revenue is generated through Search and YouTube Ads. Google’s revenue has grown a magnificent average annual growth rate of 21.05% for the past 10 years. Mobile usage is increasing 7% on average over the past 5 years.
Search is strong at 91.98% of global market share. In 2019, search advertising spending stood at nearly 106.5 billion U.S. dollars worldwide. This amount is projected to grow to about 132 billion U.S. dollars by 2022. Display advertising, which reached 161 billion U.S. dollars, accounted for the largest ad spend share in 2019. Source Statistica
Google is the worldwide search market leader with a constant global market share around 90 percent. In the United States, Google is also ranked first among unique visitors and core searches. Recent online search figures indicate heavy online search usage in European countries. Source Statistica
Google faces the threat of Amazon (AMZN) for the e-commerce. It recently announced Google Shopping will be free.
Alphabet Issues Sustainability Bonds to Support Environmental and Social Initiatives.
Today, as part of a $10 billion debt offering, we have issued $5.75 billion in sustainability bonds, the largest sustainability or green bond by any company in history. Although a number of companies have issued green bonds (directed solely to environmental uses), sustainability bonds differ in that their proceeds support investment in both environmental and social initiatives. Such bonds are an emerging asset class and we hope this transaction will help develop this new market. We’re encouraged that there was such strong demand for these bonds from investors – they were significantly oversubscribed.
The proceeds from these sustainability bonds will fund ongoing and new projects that are environmentally or socially responsible and enable investors to join us in tackling critical issues. We believe that these investments benefit our communities, employees, and stakeholders, and are an important part of fulfilling Google’s mission and goal of creating value over the long term. Source: Google
CWEB Analyst see Google stock as a safe bet for long term growth and a great addition to one’s portfolio and upward of $2300 by 2021