Tech Giant Does Not Care About Inflation
Alphabet (GOOGL) is one of the most profitable businesses on earth. They have a 10 year average Return on Equity of 17% and a 2021 ROE of 32%.
The company has more cash than it knows what to do with at $139 billion even after all the R&D spending on projects that ultimately go nowhere.
It's main bread and butter is online advertising which is projected to grow at double digits for at least another 10 years. This ad revenue is being collected by just 3 platforms search engine, youtube and android.
With thousands of people bidding daily for ad space and a system that automatically updates ad pricing Alphabet will continue to generate revenue that grows faster than inflation.
The stock has not been immune to the market sell off and now could be a great buying opportunity to for long term investors.
Disclosure: I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article. The information provided should NOT be considered advice. The topics discussed are risky and have the potential to lose a substantial amount. I am not an investment professional and therefore do not offer individual financial advice. Please do your own research before investing.
Need a Hive account? Sign up free here!
Posted Using LeoFinance Beta