ARTICULOS: GOOG: Google's Mobile Advertising Division Will Continue To Drive Growth

martes, 4 de junio de 2013

GOOG: Google's Mobile Advertising Division Will Continue To Drive Growth

Google's Mobile Advertising Division Will Continue To Drive Growth
by Daniel Philip

Introduction
After recently surpassing $850 a share, Google (GOOG) certainly appears to be a strong tech performer. It's stock market performance has certainly ousted it's rival Apple (AAPL), as Google has rallied nearly 40% in the last year alone, while Apple is currently fighting off the bears. This is actually where it's time for a reality check, as optimism on a particular division carrying a stock is never sustainable. Google needs a driver, something that can fuel its recent growth level or at least sustain it. Founders Sergey Brin and Larry Page have built an advertising and technology empire with a colossal moat in nearly all aspects of its extensive business model. Young tech companies such as Facebook (FB) aspire to achieve Google's excellence. As Google continues to garner a larger percentage of advertising budgets, I expect to see strong revenue growth and improving margins. Matched with increased effectiveness in capital allocation, Google is likely to continuously provide above par returns to shareholders. Right now, the sky appears to be the limit for Google, as its growth has been unmatched by most big tech on the street. This growth however, requires catalysts to fuel growth. Despite Google's core search business remaining strong, current growth rates must be supplemented by secondary businesses for stability. Several potential catalysts that can fuel Google's recent growth include expansions in its mobile advertising business, You Tube, Motorola Mobility, and recent Project X ventures including Google Glass. read more »

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