How to Buy Google Shares in Nigeria

Pros and Cons of Buying Google Shares

👉 There are only a few companies in the world that can claim to have power comparable to Alphabet Inc. (Nasdaq: GOOG, GOOGL). And GOOG stock has performed admirably since its initial public offering in 2004.

👉 However, the company behind the world’s leading search engine is no longer the growth engine it once was. Furthermore, its competitors are becoming more powerful, and for the first time in Silicon Valley, it is an open question whether Google will lose its search mojo sooner rather than later.

👉 The first sales of GOOG stock occurred in the 1990s. People were astounded by this step by the company because, at the time, it was surviving solely on search business. Google now has a plethora of portals available on the internet. These portals have forced other companies to compete for market share. AOL, Yahoo, Excite, Lycos, and many others are among these companies.

👉 Searching on Google generated a lot of revenue for the company, prompting it to launch GOOG stock. The NASDAQ GOOG (GOOG stock price) has become popular among investors, and many of them have purchased Google shares. In 2004, the growth of shares on IPO increased tenfold.

👉 The coronavirus pandemic kicked off the year 2020. As a result, the company suffered a loss, and the stock fell by 2%. Investors began purchasing the company’s stock. There are numerous benefits and drawbacks to purchasing Google stock, some of which are discussed below.

👉 Here’s a quick rundown of the Mountain View, California-based technology behemoth, its main lines of business, and — most importantly for prospective investors — the benefits and drawbacks of owning GOOG stock.

Pros of buying Google shares in 2023

👉 The first and most obvious benefit of owning Alphabet stock is simply owning a piece of the world’s largest search engine.

👉 Its core search and advertising model remains dominant in its markets and evolves as the advertising market shifts from online to mobile.

👉 The consistent year-over-year increase in total paid clicks suggests that no other search company will meaningfully cannibalise its mobile share.

👉 The company’s search dominance can be summed up by the fact that the word Google is now used as a verb to indicate when someone is going to use a search engine, which is a huge advantage for any company selling a product or service.

👉 Aside from its big-time search engine cash cow and exceptional brand, the second “pro” to owning GOOG stock is the company’s investment in diversification: self-driving cars, YouTube, artificial intelligence, cloud, and voice search.

👉 In the long run, several of these areas have game-changing potential that could usher in a new era of growth for GOOG shareholders: AI and self-driving cars, in particular (AVs).

👉 Alphabet’s Waymo subsidiary is already a market leader in AVs, and Alphabet’s R&D investments in artificial intelligence have elevated it to the ranks of the best AI firms.

👉 Because of the company’s Android operating system, Google stock will prosper with the help of mobile. This operating system is used in the mobile phones of many mobile manufacturing companies. Other apps include AdMob, Google Maps, Gmail, Calendar, Drive, and so on. It is expected that mobile will boost the search business while also increasing revenue. People can conduct as many searches as they want on their mobile devices because it is a personal devices. They can also choose to click on the ads of their choice.

👉 Another benefit of investing in GOOG stock is the video that is displayed on YouTube. Its YouTube video service is at the heart of the transition of video content from traditional media to online, as online video consumes an increasing share of traditional TV advertising budget.

👉 YouTube has become the most popular platform for sharing videos, and it also allows you to download them. Advertisers can also publish their ads on YouTube. Because traditional advertising media was slow, companies are now focusing on digital marketing, with Google being the most prominent brand in this field.

👉 The company’s revenue has grown and continues to grow. People should not be concerned about investing in Google stock because the rate of growth is consistent.

Cons of buying Google shares in 2023

👉 Google’s App Store is under greater antitrust examination, raising the specter of regulatory risk. 

👉 There are very few companies that have successfully launched their software and hardware, and Google has had little success with hardware. Google’s acquisition of Motorola was a significant blow to the company’s hardware business, so Motorola was sold to Lenovo.

👉 One of the most significant disadvantages of purchasing Alphabet stock is the existence of Amazon.com (AMZN). Not only does it exist, but it is attacking Google on all fronts.

👉 Amazon’s encroachment into voice search — perhaps the future of search itself — where it’s Alexa virtual assistant has a huge first-mover advantage, is perhaps the greatest long-term risk to GOOG.

👉 Amazon is also capturing digital advertising dollars as marketers shift spending to Amazon.com’s expanding platform and more and more profitable product searches begin on Amazon rather than Google. Amazon Web Services is the clear market leader in cloud computing, with Google Cloud chasing it, and Jeff Bezos’ ruthlessly opportunistic company is also devoting time, energy, and resources to AI.

👉 Another source of concern is the looming threat of regulation, which is making increasingly prominent headlines. When politicians begin to use the phrase “too much power” in relation to corporations, the regulatory climate rarely improves.

👉 Finally, GOOG stock is arguably overpriced. Alphabet is not the most outrageously priced company in the market, nor is it the most overpriced in Silicon Valley — but there appears to be a moderate cyclical overvaluation, and GOOG shares are affected by this.