Hope That Google Stock Falls-- Then BUY!

Google has the chance to become the world's most dominant company in the next ten year's if it isn't already. The stock is not cheap right now, trading @ 27 times current earnings, and currently dropping in price at least in part because Mozilla replaced Google with the Yahoo as it's default search engine for its Firefox browser, costing Google market share in the most recent report. (duh?)

Naturally, analysts who have to say something all the time went into an uproar about how this could be an emerging downward trend for Google, and point out the fact that Apple is thinking about replacing Google as the default search engine in the iPhone, and with Facebook's graph search coming out, and people shopping first at Amazon rather than Google as a way to BUY (hear those $$ signs?) Products, yaddah yaddah yaddah ...
And yes, Google generates most of its profits from search, and many analysts believe Google to be a one trick pony.
Yes, a company with hugely profitable business center is going to be attacked by the competition, that's the nature of capitalism.
That said, Google is still a ubiquitous verb around the world defining search.
It is addressing Amazon's encroachment head on, by selling similar goods to consumers, and employing same day delivery in some places.
If Apple replaces Google, well, that will cause some short term pain. People might even adopt Bing or Yahoo search from this.

However, while I believe that Google will maintain a dominant market share for search, and no one has touched their traffic affiliate program, the real reason to invest in Google is what they have coming up the pipeline and the management.
Google purchased Android cheaply to counter what they saw as an emerging trend in mobile, then gave it away to equipment makers. Now they own 80% of the mobile market share.

YouTube was purchased for 1.6 billion dollars. Eric Schmidt, then Google's CEO admitted overpaying to ward off any bid from Yahoo or Microsoft. Today the property is worth by analysts' estimates 30 billion dollars.

Google still has a stranglehold on search, and incredibly loyal employees who love working there. A function of good management for sure.

Google invests a tremendous amount into R+D. Coming out they have --
The driverless car- a robotic taxi service. Might be a few years away, might be 15, the technology is amazing.
Many many robotics projects the public knows nothing about. They purchased Boston Dynamics as well other robotic plays.
Nest, a company purchased for 3 billion not long ago, is developing "the internet of things." Connected devices in your home. You don't think that owning 80% of the smartphone market might help out here do you? 

Google has a lot of moonshot projects we know little about in their planning stages. They have the best engineers on the world, and investing into Google today, though not risk free, has the potential to reward investors amazingly in the long term. 

Bottom Line
Ignore the pundits and the analysts of the short term problems, and look long term! Google is changing the world (and already has) and investors will be rewarded accordingly.  


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