QUOTE AND NEWS
Forbes  56 min ago  Comment 
Google confirmed it will offer wireless Internet services later this year, though on a very limited basis. Its real goal: to spur traditional cellular operators to cut costs and improve service.
News.com.au  2 hrs ago  Comment 
HEWLETT-Packard will shell out $3.45 billion for a mobile networking group. Meanwhile, Google will be offering mobile plans.
TheStreet.com  3 hrs ago  Comment 
NEW YORK (TheStreet) -- Google shares are up 1.84% to $568.68 in trading on Monday after the tech giant announced that it is launching its own virtual mobile network in the U.S.The announcement came at the Mobile World Congress trade show in...
Benzinga  3 hrs ago  Comment 
In 1999, Google Inc (NASDAQ: GOOGL)(NASDAQ: GOOG) founders Sergey Brin and Larry Page wanted to sell the company for less than $1 million, as it was taking too much of their "study time." However, the CEO of Excite.com, the company they wanted to...
SeekingAlpha  4 hrs ago  Comment 
Benzinga  4 hrs ago  Comment 
The Federal Communications Commission's decision to regulate the internet as a public utility could become a precedent used by international leaders looking to create their own policies to protect net neutrality. On Tuesday, FCC Chairman Tom...
Benzinga  4 hrs ago  Comment 
Bank of America Merrill Lynch (BOAML) upgraded shares of Google Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) from Neutral to Buy, and raised its price target from $580 to $650 on Monday. According to the firm, Google shares are becoming more attractive on...
Benzinga  6 hrs ago  Comment 
Even though YouTube is one of the biggest traffic source for Google Inc (NASDAQ: GOOGL), recent reports have highlighted how the company is not making any money off of it. Brian Wieser, senior analyst at Pivotal Research Group, was on...
TechCrunch  6 hrs ago  Comment 
 Connecting the world doesn’t have to be a cutthroat competition, Mark Zuckerberg signalled on stage at Mobile World Congress earlier today When asked if Facebook’s Internet.org access initiative would consider working with Google’s...
Clusterstock  6 hrs ago  Comment 
Forbes is out with its annual list of the wealthiest people on the planet. Microsoft founder Bill Gates remained in the top spot for the second year in a row, having added $3.2 billion to his personal wealth. Tech tycoons continued to...




 

Google Inc (NASDAQ: GOOG), a global information technology leader, specializes in how people access and interact with information. Google provides the leading search engine along with many online services such as Gmail, Adsense, and Chrome. In fiscal year 2010, Google reported $29.3 billion of revenues and $8.5 billion of net income. Google operates in over 50 countries with unique domain names for each country. Internet advertising is the fastest growing segment of the advertising market, but still only represents 8% of total U.S. advertising dollars -- suggesting considerable room for further growth. To tap these opportunities, Google has used the profits from its paid search business to support innovative projects such as Google Editions and the Android Market.

Business Overview

Google’s search tools allow users to efficiently search through vast amounts of web-based information, organizing and delivering results based on relevance. It also has a long and growing list of products in many other areas of computer applications. Consumer usage of its products is free, financed through advertising (96% of 2010 Revenues) and licensing (3% of 2010 Revenues) sales.

Co-founders Larry Page and Sergei Brin created Google's core PageRank technology to archive and organize Internet webpages and develop a searchable database. The basic tenet of PageRank is that when one website links to another, the first website is endorsing the second. Pages are then "ranked" according to the ecosystem of all web pages archived. While the company has since utilized numerous other ranking systems, PageRank still remains a central technology. Google also creates search products for photos, videos, and specific websites types such as blogs. Google does not charge consumers for its search capabilities, receiving most of its revenue from advertising and a small portion from licensing its search technologies to enterprise companies.

Trends and Forces

Google's Advertising-Based Business Model is Susceptible to Economic Cycles

Advertising is a major revenue driver for Google, with 96% of its revenue coming from advertising. This dependence is a concern in a down economy since advertising is generally the first source of cost-cutting for companies[1]. Google has seen an increase in the number of paid clicks generated by an increase in aggregate traffic and the continued global expansion of their products, advertiser base and user base. The decrease in the average cost-per-click paid by advertisers was primarily the result of the strengthening of the U.S. dollar relative to foreign currencies.[2]

Google's Web Presence Stands to Gain from Growing Internet Traffic

Since 2000, the number of worldwide Internet users has more than doubled. However, certain regions have grown faster than others. Google seems to be positioning itself to grow even more substantially internationally likewise JBVEF especially in the Financial Sector, earnings, and advertising Google is poised to hold its own and continue to deliver top notch results. The US market is responsible for around 48% of Google's revenue by geography while 39% comes from the rest of the world (the UK brings in around 13%).[3]

Google's Free, Advertising-Supported Offerings Prove Highly Disruptive

Google has completely transformed the world of advertising in its efforts to connect users to information. Its free offerings have been highly disruptive to well-rooted industries, provoking frequent legal conflict. Viacom is seeking damages in excess of $1 billion from the posting and distribution of copyrighted materials on YouTube. With the 2004 launch of Google Book Search, authors and publishing houses reacted to the millions of copyrighted books being downloaded for free. The Authors and the Association of American Publishers sued Google for copyright infringement in 2005. Through a settlement, Google continues to make books digitally available, to the chagrin of publishers and book retailers such as Amazon. With the launch of Google Earth, the appeal of America Online's MapQuest basically disappeared overnight. Google's Android-based smartphones, equipped with free GPS navigation services, have upended the need for TomTom, which comes at a charge to consumers. Google's Gmail, Google Apps, and Chrome also competes directly with Microsoft's Hotmail, Office Suite, and Internet Explorer respectively[4].

Competition

Although Google in its broadest perception has gained an unparalleled marketplace acceptance, in the narrower search market its competitors are Yahoo! (YHOO) and Microsoft (MSFT), which is currently expanding into the online search and advertising business within the US and Baidu.com (BIDU) in China. Yahoo, founded four years before Google, was historically the leading online search site, but in January 2009, Google made headlines by overtaking Yahoo in unique users per month. Relative to Yahoo!--and almost any company--Google's expenses are quite low. The expense breakdown suggests different priorities for the two companies: Google's highest cost sector is product development, at 9%, while Yahoo! allocated 20% of revenues for sales. And while Google spreads its costs evenly among the three principle areas, Yahoo!'s expenses are clearly concentrated in sales, with development and administration trailing far behind.

Because Microsoft has many sources of revenue beyond advertising, it is difficult to compare it in more detail to Google and Yahoo!.

With a plethora of social networking websites and platforms making their way onto the internet, Google faces stiff competition from websites such as Facebook, Twitter, Groupon and LinkedIn.

Google's Android smartphone operation system is also in direct competition with Apple (AAPL) , Microsoft (MSFT) and Research in Motion (RIMM) in the fast-moving, competitive smartphone market. These corporations also uses JAVA programming [[1]] (BlueJ) language for development and research as well.

As Google expands into e-commerce and Local services using its Google Offers, Checkout, and Wallet , it is also encroaching on an estalished player in Groupon as well as Facebook's Deals.

Sources

  1. GOOG 2008 10-K pg. 19  
  2. GOOG 2009 10-Q1 pg. 27  
  3. GOOG 2009 10-Q1 pg. 28  

46. Android GPS tracking 47. The Android Phone

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