Google Inc. (NASDAQ/GOOG) is showing why I think it’s one of the top technology growth plays at this time…and going forward.
No longer simply a web site and online advertising marketing company, Google has been spreading its wings into software and hardware, as it moves to the next level as a company, based on my stock analysis.
The stock may be trading above $1,100, but my stock analysis indicates that in the years ahead, Google may be one of those high-priced stocks that you may look back on as a bargain at $1,100. (See “When High-Priced Stocks Become Attractive Investment Opportunities…”)
No one seems to care that the shares of Berkshire Hathaway, Inc. (NYSE/BRK-A) trade above $169,000 a share, so what’s the big deal with Google at $1,100?
What I continue to like about Google is its constant tinkering of its strategy and business operations.
Google developed a self-driving car that has already driven itself some 300,000 miles or so and has only been in one accident—which Google claims occurred while the self-driving vehicle was being manually driven. Can you imagine self-driving cars on the streets of New York City or the crazy highways of Beijing? The company is all about innovation, based on my stock analysis.
Considering buying Google, according to my stock analysis, is akin to buying a technology-based private equity fund due to its constantly being on the lookout for innovative technologies and spreading out its technological patents.
In 2012, Google acquired the handset unit of Motorola for $12.5 billion; but after watching how competitive the smartphone market is, Google made the decision to sell the unit to Lenovo Group for only $2.91 billion. That may seem like quite a loss, but for Google, a $9.0-billion loss is really not a big deal given its market cap and cash position of $55.0 billion, according to my stock analysis. The deal makes sense, as it allows another company that has a focus in consumer electronics to assume the risk and not Google, which would rather be an investor and venture partner.
Concurrently, Google is paying $3.2 billion to acquire another innovative company: Nest Labs Inc. The deal will give Google access to Nest Labs’ advanced home consumer devices, such as thermostats and smoke alarms. For Google, it offers the company another viable revenue stream with next-generation products, as my stock analysis indicates.
As my stock analysis would suggest, Google at $1,100 may be just one example of a high-priced stock that has all the characteristics to inevitably become one of the best buying opportunities of today when we look back on it years later. If you’re considering buying the stock, you may want to look into call options, which will allow you to take on a cheaper leveraged play on Google.