Google’s Stock Review. Our review of Google Stock and why we believe Google stock is the Future of Technology. Google AI (DeepMind).
NASDAQ: GOOGL
Let’s start of with a quick in introduction to Google, if it even needs one.
So… What is Google?
The California-based company is one of the most successful stocks of the 21st century, launching at just over 50 dollars a share in August 2004 before reaching a 52 weeks high value of 1726 dollars in 2020.
This represents a 28% year to year gains and 128% in 5 years.
Google, LLC is a multinational technology company that specializes in Internet-related services and products. To mention a few:
- Online advertising technologies
- Search Engine
- Cloud Computing
- Software
- Hardware
Google was the most valuable brand in the world in 2017 and Google.com is the most visited website in the world.
Have you ever asked yourself: What would life be without Google?
Take a second to think about it…
Google grew to be a part of our family and we use it everywhere, everyday.
We use google for research,
Google maps for navigation,
Google’s android system in your phone,
or even Youtube for entertainment and information.
But how does Google make money?
The biggest source of income comes from AD Revenue,
which counted to almost 134.81 billion US dollars in 2019.
Other revenue streams include Google Cloud, Hardware e.g. Google Pixel, Google Playstore, and YouTube Premium.
From 2014 to 2019, Google increased it’s Gross Profit from 40B to 89,9 Billion US Dollars.
In the same time period, their Consolidated Net Income grew from 14B to 34,3B.
In the third quarter of 2020, Google reported a revenue of 46.02 billion dollars, up from 37.99 in the preceding quarter.
Google’s “other bets” saw, in 2018, a revenue rise of 25%.
Google on the Stock Market
You can find Google on the stock market under the ticker, NASDAQ: GOOGL.
Alphabet has 3 types of shares:
– Class A, which gives 1 voting right per share;
– B, which is mostly owned by the founders and has 10 times the voting power compared to Class A;
– Class C, which give you no voting rights.
Only Class A and Class C shares are traded on the Stock Market.
The Future of Technology – Google’s Artificial Intelligence
One way we think Google will keep increasing it’s revenue is duo to its Artificial Intelligence project, DeepMind.
Global Artificial Intelligence had an approximate market cap. of 16billion in 2016, 39.9 billion in 2019 and is expected to grow at a compound annual growth rate of 42.2% from 2020 to 2027.
By 2025 the AI market size is expected to be worth 390.9 Billion US dollars, according to a report by Grand View Research.
Google’s DeepMind
Google DeepMind is a company founded in 2010 by Demis Hassabis, Shane Legg and Mustafa Suleyman as Deepmind Technologies and bought by google in 2014 for 500+ million US Dollars. Elon Musk is also an investor in the company.
Their goal has always been “to solve inteligence”. The way they try to solve it is by using neural networks, which is s a series of algorithms that endeavors to recognize underlying relationships in a set of data through a process that mimics the way the human brain operates.
It is essentially a Machine Learning model (more precisely, Deep Learning) that is used in unsupervised learning.
DeepMind showed some of its potential when in 2015 it beat a human at the worlds hardest game, GO.
AlphaGO scored a 4 to 1 win in Ancient GO against a professional Go player, and the way it did it is impressing.
Instead of calculating all possible outcomes, AlphaGo used reinforcement learning and neural networks to mimic the learning process of the human brain, and it learned to do so from scratch.
Another example is Google’s DeepMind AI teaching itself how to walk. Even though the AI was never shown what walking looks like, all it needed was an incentive from the programmers to go from point A to point B.
It also taught itself to jump, hoist up and over obstacles and keep it’s balance even if pushed around.
The Artificial Intelligence community was shocked, with most people thinking such an event was at least a decade away.
But… What can it be used for?
Below, I’ll mention some applications of Artificial Intelligence:
- Finance:
In August 2001, robots beat humans in a simulated financial trading competition. AI has also reduced fraud and financial crimes by monitoring behavioral patterns of users for any abnormal changes or anomalies. - Healthcare:
AI programs are applied to practices such as diagnosis processes, treatment protocol development, drug development, personalized medicine, and patient monitoring and care. In the future, it may reduce healthcare costs. - Education:
AI can drive efficiency, personalization and streamline admin tasks.
Most of AI is still science fiction though. We are years and maybe decades away from having a fully automated and human-level intelligent AI, but with countries investing more and more into the subject,
we believe we will get there sooner rather than later. China’s plan alone for AI’S search and development will cost above 100 billion US dollars over the next 10 years.
Our Conclusion:
For all the reasons above, we think AI is going to be the future of Technology.
Google, being a giant company and having reported profits year after year, allows you to be invested in future technology such as AI without it being it’s only source of income.
Can you really go wrong with Google? We think not.
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