Le 14 octobre 2015, 17:19 dans Humeurs • 0
Is The Party Over Everyone loves a good growth story. They are fun to watch, and can be very rewarding for those invested in them. One of the best growth stories out there has been Google (NASDAQ:GOOG). The internet giant has continued to evolve amidst a changing tech landscape, and those holding shares have done quite well at times. Back in July, I asked if it was possible for Google to face an Apple (NASDAQ:AAPL) like fall. Looking back, the day I wrote the article was Google's alltime high share price. Google shares are down about $40 since then, but were down twice that much a month or so ago.
Today, I return to look at Google again. Google has been a great growth story, but those growth numbers are declining again, putting the company at a key point in its history. When Apple hit that point, shares were crushed. Now it is Google's time to prove whether or not the party is truly over.
Growth rates coming down:As companies mature, their growth rates slow down. That is rather obvious. But for a company like Google, investors are buying the stock because that is all the company offers. Google does not offer a dividend and they are not buying back stock. It all Isabel Marant Boots Sale comes down to growth, and the following chart shows Google's GAAP revenue growth going back to 2007.
Projected based on current analyst estimates.
Now the one item that makes the chart a bit misleading is the fact that a isabel marant shoes lot of the 2012 growth was due to the Motorola Mobility acquisition. In fact, more than a third of it was. In 2012, Google itself grew GAAP revenues by 21.46%. But the company's overall growth was 32.37% thanks to more than $4 billion in GAAP revenues from Motorola. Those revenues started in Q2 of 2012. The acquisition benefit continued in Q1 of this year, because the Q1 of 2012 period had no revenues from Motorola. Through six months in 2013, Googleonly GAAP revenues were up about 20.6%. Total company revenues were up more than 25%. That "benefit" ran out in Q2, so from here on there will be no more acquisition bump.article. Investors should also consider seeking advice from a broker or financial adviser before making any investment decisions. Any material in this article should be considered general information, and not relied on as a formal investment recommendation.