Why You May Wanna’ Invest In Google Stock

Whether or not to invest in Google stock is a tough question to answer with lots of uncertainty. Let’s look at the big picture.

Pro: Google dominates

Let’s face it, Google’s a household name. They dominate the internet search market. Over 50% of all internet searches are through Google.

Their closest competitor is Yahoo! and they own about 25% of searches.

Google seems to just have the magic touch. I know I rely on them and their technology heavily.

Whether it’s Gmail, Adsense, Adwords, Google Earth, or iGoogle, I use Google pretty much every time I’m online.

They keep coming up with new things that surprise me.

Pro: It dominates a young, explosively growing market

Perhaps the most compelling reason to invest in Google stock is that the market they dominate has more potential than almost any other market.

The internet came out in the early 90’s. Just more than 10 years ago. I guarantee it’s not going anywhere. Can you imagine your life without the internet?

Most of the world’s not online yet. But they’re coming. And I guarantee that when they do, they’ll find Google.


Pro: Opportunities abound

Since Google has established itself as a leader, and has tons and tons of cash with more on the way, it can easily enter new markets and continue acquiring other businesses.

(Some people are saying that Google’s entering the wireless phone market.)

Google’s reputation, massive amount of capital, and proven management, cause even the most worthy competition to quiver.

Con: But there is fierce competition

Despite their current advantages, they face a tremendous amount of competition from extremely smart, resourceful individuals and organizations. (i.e. Bill Gates and Microsoft)

Also, because they dominate so handily, they’ve become somewhat of a target. The little guys may team up and try to dethrone King Google.

Not to mention, they’re in one of the fastest-changing markets imaginable. There are always new ideas and inventions. Google was actually one of them, the brain-child of two nerdy college kids.

I guarantee there are thousands of nerdy college kids coming up with their own ideas right now.

Con: Their revenue comes mostly from ads (like these ones…)


Almost all of the revenue Google receives comes from it’s ad network. This could be a reason not to invest in Google stock.

Most likely, internet advertising will continue thriving over the next decades. BUT, it will definitely keep changing. If Google’s not able to continually stay one-step ahead of it’s competition, it could lose market share.

Before, Google was a smaller and more nimble company. They could adapt quickly to changes. But as they grow larger and larger, maneuvering in this lightning-fast market will become more difficult.

The bottom line

I own shares of Google and I plan to continue to invest in Google stock. I think it’s pretty cheap since it got beaten down from around $800 to about $450.

I have been accumulating it since February 2006. I bought some at around $450, then more at about $600, and recently bought some more at $450.

I see Google being at around $1,000 by 2011.

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