As the saying goes, time really does fly. It is already the 10 th anniversary of Google's since Google ( GOOG ) ( GOOGL ) IPO back on 19 th August 2004. Without question, Google has managed to succeed and grow exponentially over the past decade, and it has blown past its main competitors from back in the day, mainly Yahoo ( YHOO ) and Microsoft ( MSFT ). Ten years ago, in all honesty, it was very doubtful that Google would overtake its competitors and power through to an unprecedented level of success.
Google's Huge Undertaking
Google's growth has really been an incredible feat, considering how small Google was in the digital realm back then. According to the Wall Street Journal, the company had a paltry 2,000 employees, and it wasn't much more than a search tool. Google marketed its products and search engine features in a very detailed manner, listing its thesaurus, dictionary, spell check, and other features as unique to the company, features that are now very standard to any search engine, and perhaps even outdated given recent advances.
Google's mail service was merely starting out back in 2004, and the lack of smartphones did not help Google in becoming the internet mogul it is today. It is also astounding how Google hasn't finished growing, and how the company has moved into a number of different segments over the years.
Google Widens Its Horizon
In simple terms, Google is a search engine that sought and still seeks to "deliver relevant information on any topic," per the Wall Street Journal . Nowadays, Google has a market cap of about $400 billion, only trailing behind Apple ( AAPL ) and Exxon Mobil Corporation ( XOM ), in terms of being the most valuable company in the US. GOOGL has managed to outgrow itself in the past decade thanks to the advent of a number of different services, products, and acquisitions.
Google's revenue was about $3.2 billion in 2004, when it launched Gmail. It then launched Google Maps in 2005, and had revenue almost double. In 2006, the company acquired online video crowd sourcing and sharing behemoth, YouTube, and had crossed $10 billion in revenue.
Google released Google Chrome, an enhanced browser, Nexus One smartphone, self-driving car technology, Google+ social network, Nexus 7 tablet, Google Glass, a monthly music subscription, and recently Google has just announced plans for YouTube and Gmail accounts for kids.
Larry page was certainly honest when he said he "wanted to get the search engine's users out of Google and to the right place as fast as possible," but he is doing much more than that nowadays by pushing a lot of services and content to 'trap' Google's users in the virtual world.
Google's search engine alone is a highly valued service, as it is, according to many, the best engine available for internet users. Google still profits the most from advertisers on its web pages, and this accounts for the bulk of its enormous revenue to this day.
We know that Google is very profitable from its results year over year. We know its revenue is increasing, and we know that its stock has soared ever since its debut. GOOGL is currently a Zacks Rank #3 (Hold), and Google has been surprising us in a negative way as of late.
The Zacks Consensus Estimate Trend has been decreasing, indicating that $5.35 EPS prediction is not likely to be crushed by the actual reported earnings when the time comes. It is also worth mentioning that while the stock has a neutral rank, consensus estimates for next year aren't looking too well as 11 estimates have been revised lower in the past sixty days, though GOOGL shares are still hovering near the $600/share level.
GOOGL's next earnings report date is scheduled for the 16 th of October. We do not know conclusively whether GOOGL will crush expectations or not, so investors should err on the side of caution. Throughout its history though, GOOGL has been profitable, but has not necessarily beaten EPS estimates (before non recurring items), as we saw in the 3 previous quarters' conference calls.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.