Still Need a Reason to Invest in Google? Take a Look at Quarterly Earnings

July 24, 2018
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Google (NASDAQ: GOOG), along with several top tech firms, has been promoted as one of the top growth stocks for portfolio diversification in 2018. It has frequently been a top performer with high share prices and strong increases year on year. For those investors who are yet to hold a piece of it, now is as good a time as any.

Google stock continues to grow, and as it continues to go up, it’s only going to become less accessible for entry-level investors.

Google is Figures Exceed Analyst Expectations

Alphabet Inc., Google’s parent company, has reported $3.2B in income for the last quarter. That equates to earnings of roughly $4.54 per share, which is down slightly from the $5.01 per share during the same quarter last year. This drop is partially attributed to the record fine that the company recently received from the European Union. Without the fine, the company reported that earnings per share would have topped out at $11.75.

Total revenue was $26.24B, a significant increase from the $20.91B that was reported in the same quarter last year. This is also a significant improvement over the $25.58B that was projected by analysts.

Investors Highly Confident After Earnings Report

Google Stock on the NASDAQ grew by 3.94% at the end of trading on Monday. This contributes to three-month growth of 18.19%, YTD growth of 15.20%, and one-year growth of 26.80%.

By all metrics, Google is currently one of the strongest performers on the stock market. If you are not currently investing in the company, then you need to take a close look at your portfolio to determine why you didn’t invest in google.

If you are currently leveraging other large tech stocks, then investing in Google may not be necessary. Companies like Microsoft (NASDAQ: MSFT) or even Amazon (NASDAQ: AMZN) are popular alternatives in portfolios that are already tech-rich.

If you can afford to invest in google or all the large capitalization tech stocks, then that is also something to consider. The largest and most successful investment funds usually hold interests in the top four tech companies, which means adding Apple (NASDAQ: AAPL) to the stocks mentioned so far.

Earnings Season Can Expose You to New Opportunities

We are now fully into earnings season with most publicly traded companies due to release figures in the coming week. As seen with Google, now is a critical time to watch the news, as earnings reports can help you to understand current market trends, gauge investor confidence levels, and you’ll learn about some of the best stocks to buy for the rest of the year.

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