Why is Alphabet the FAANG you should buy?

Published by: MRT

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¿Por qué Alphabet es la FAANG que deberías comprar?

It went from being a simple search engine to being the operating system for millions of mobile devices, to name just a couple of examples. Alphabet-A It has been growing for years and promises much more in the future. Not forgetting the great results, having a modest valuation but with a solid base and strong cash flows, according to Royston Yang en The Motley Fool.

Originally known as Google, or the “G” in the acronym for FAANG, the company changed its name in 2015 to signify that it is far from being a mainstream business. Although Google Still a fundamental part of Alphabet, the company is made up of a collection of disparate businesses exploring different technologies and industries.

The above, as well as the fact that Alphabet is producing magnificent numbers, are good reasons why you should not hesitate to take stock of this Internet giant.

Alphabet’s financial performance is impressive, which explains why the stock has nearly doubled in the last year alone. The income started in $ 90.3 billion in 2016 and more than double $ 182.5 billion in 2020, while the net income increased from $ 19.5 billion to $ 40.3 billion during the same period. Additionally, capital spending has remained fairly constant even as operating cash flow increased, leading to higher levels of free cash flow for the company over the past few years.

The company has shown that it can still grow rapidly, with its revenue from the second quarter fiscal 2021 increasing by 62% year over year. Rising technology adoption and digitization were major factors contributing to the rise, but Alphabet was already on a steady growth trajectory even before the pandemic broke out. The net income for the quarter more than doubled from year to year $ 18.5 billion, and the semester net income of the company of 36.5 billion dollars they have already exceeded the net income for all of 2019.

The best thing about Alphabet is not just its financial numbers, but how the company strives to improve the lives of all of us in many ways. The pandemic has highlighted how innovative the company has been, as Google teams launched more than 200 new products and features. Also added a capa COVID-19 a Google Maps to display case information to help people plan their travel routes, and Google Meet, the company’s video conferencing software, was made free to anyone with a Gmail account.

The CEO Sundar Pichai gave a look at new products and systems on the company’s latest earnings conference call. A new artificial intelligence system called LambdaWith natural conversational abilities, you can help make communication and computing more accessible to everyone. The next version 12 of Android seeks to improve speed and energy efficiency and can also customize devices. while YouTube Shorts, a short-form video format similar to the popular TikTok, has been deployed in more than 100 countries around the world and has garnered more than 15 billion daily visits.

It will also be investing $ 10 billion over the next five years to strengthen the cybersecurityas this is now a critical area of ​​focus for many companies and governments. And let’s not forget that the tech giant also has an “Other bets” division that makes ambitious investments in new technologies, such as Self-driving cars and healthcare data analytics.

At the heart of Alphabet’s culture are the “shots to the moon”, that help the company to diversify into new or adjacent technologies and turn them into mature and prosperous companies. Essentially, the company is not interested in making only incremental changes to its products and services, but is focused on looking for a revolutionary change that can take technology to a new level.

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