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Google is Now in the Most Elite Group in the World

Fundamentals     

Written by Ophir Gottlieb, 10-22-2015


Google just announced earnings and crushed it. Revenue came in at $18.68 billion vs. estimates of $18.53 billion, and earnings per share (EPS) came in at $7.35 vs. estimates of $7.21. The stock is up nearly 10% after hours and that means it has joined the most elite club in the world.

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Google is now one of only two companies with a market capitalization over half a trillion dollars. Google's partner in this group is of course the incomparable, Apple. Here is a chart of the largest companies equal spaced (ranked) on the x-axis and with market cap on the y-axis.





Google reported it is making substantial progress in the ever important mobile market with more than 50 percent of Google searches coming from mobile phones. 90% of the company's revenue comes from advertising.

But there is another elite group that Google has joined. Engadget summarizes usage best here:

"[CEO] Pichai [] announced Google Play as the company's sixth product with more than one billion users, joining stalwarts like Android, Chrome, YouTube, Maps and Search. Given how tightly integrated those six products are, it's not a big surprise -- but the company hitting a billion Google Play users without it being available in China is an impressive achievement. "
Source: engadget.com




Google also announced its first ever stock buyback program for $5.1 billion.

Finally, the company is moving into Android Wear, Android Pay, Android Auto (a self-driving car), Virtual Reality (to compete with Facebook's (FB) Oculus one presumes), a new Tablet called Project Tango amongst other things (yes, there is more). Of course, first and foremost, it's ads, click rates and click rate growth.

Up Next We Suggest: Why Apple Will Win and Be Worth $1 Trillion. Period.


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