Google All Time High

AMAZING NEWS for Google
Because not only did it emerge victorious from one of the most critical legal battles in its history, but it also confirmed that it remains the most profitable company in the world. And this isn’t just a phrase. It’s a fact that gets confirmed again and again with every new development.

GOOGLE’S LEGAL VICTORY

The case revolved around whether Google should be broken up, and more specifically whether it would be forced to separate from Chrome and Android. The U.S. Department of Justice’s proposal was clear: Breakup, to stop the monopoly.

However, federal judge Amit Mehta ruled differently. The court decided that even though Google holds a monopoly position, it WILL NOT HAVE TO BE BROKEN UP.

What does this mean?
(a) It keeps Chrome.
(b) It keeps Android.
(c) It continues paying Apple the billions it does every year to remain the default search engine on the iPhone.

The only change is that it can no longer make exclusive deals. But it can still pay to be offered as an option. This means Google retains control of the most important distribution channels for its search engine.

And, as expected, the markets went crazy with the news.

As Wedbush commented: “Monster win for Google , a home run ruling that removes a huge risk from the stock.” And not unfairly. Because this risk has been casting a shadow over Google stock for years.

And why is all this so important? This decision is decisive for four key reasons:

• It eliminates every scenario of a mandatory breakup, which was the market’s biggest fear.

• It keeps Google’s profitability from search intact, which is the backbone of its revenues.

• It allows it to continue massive investments in artificial intelligence through Gemini, without restrictions or uncertainty.

• It confirms its dominance in Android, which powers 70% of smartphones worldwide, ensuring a huge user base for Google’s ecosystem.

This means Google is not just stable. It’s also ready for the next day. A future built on AI, where Google has already paved the way to dominate.

FINANCIALS

To really understand the power of this company, let’s look at its financials, which are performing exceptionally well! Specifically, we have:

• Revenue growth for 5 consecutive years
  

• Net income growth for 5 consecutive years
  

• Free cash flow growth for 5 consecutive years
  

• Net cash position – it owes nothing
  

• Consistent share buybacks
  

• ROIC: 31.8%, among the highest in the S&P 500
  

• Healthy dividend payout under 15%

So, if you ask me, anyone thinking of investing in Google shouldn’t wait too long. Because with results like these, this kind of momentum, and with the regulatory risk now removed, we may not see it at these price levels again.

source

Posted Using INLEO