No One Is Dethroning the King of Search

What about GOOGL's rating? Published By Money & Markets, LLC. August 08, 2024 Published By Money & Markets, LLC. August 08, 2024 [Turn Your Images On] [Turn Your Images On] From The Desk of [Matt Clark, CMSA®]( Chief Research Analyst, [Money & Markets Daily]( No One Is Dethroning the King of Search: What About GOOGL's Rating? Money & Markets Daily, A few weeks ago, my wife declared: "I want to go to our community pool every day to exercise." She followed that up by telling me it wouldn’t be hard. It only takes 20-some times before it becomes a habit. I had to look that up because it didn’t seem plausible that doing something roughly 20 times would make it a habit. It turns out that it doesn’t (although I am not going to tell my wife she was wrong). Studies show it can take 30 to 60 repetitions for something to stick, which is likely why many of our New Year's resolutions fail. I bring this up because we all have habits, but none more prominent than our web browsing activity. What platform we use, how we search and what websites we browse are now ingrained in our daily activities. A recent court ruling threatens to throw those web habits out of whack. Today, I’ll break down that ruling and show you what Adam’s Green Zone Power Ratings system tells us about the stock largely impacted by the decision. The Great Google Antitrust Case On Monday, a district court judge ruled that Google, operated by Alphabet Inc. (Nasdaq: GOOGL), has an illegal monopoly on web searches. This means that by controlling 90% of the online search market and 95% of the search market on smartphones, Google has eliminated any chance of competition. [Turn Your Images On] Since 2015, Google has dominated the global search engine marketplace … and it’s never been close. Its closest competitor is Microsoft Corp.’s Bing, which holds a paltry 3% of the total market. Google has paid billions of dollars over the years to ensure its search engine is the default on smartphones and operating systems. If you're a Mac user, you may use Safari, but the browser defaults to Google's search. Essentially, the judge concluded that Google had been forced on us. And after establishing its early search engine dominance years ago, Google has raked in billions in ad revenue that it can use to force any competition out. Now, we're left wondering if any remedies would impact Google’s bottom line the way pundits and the media think it will. The problem is that Google has become such a habit that even if you took away automatic access, we’d still go to Google to look something up. (We all know and use the tagline: “Just Google it”). Over the years, Google has built up such a huge database for its search engine that any competitor will have to spend billions to match its search capability. Plus, this case is going through the slog of the U.S. justice system (it was filed in 2020 and just received its first ruling, which Google will appeal), so it will take years before we reach any real conclusion. No matter the outcome of this monopoly ruling, I don’t see Google losing its status as the king of search. So, how does its stock look now? --------------------------------------------------------------- [25 Years of Market Data Shows Gains During Each of the Biggest Market Sell-Offs]( It’s easy to profit when everything is going up. Not so much when during sell-offs like we saw this week. Which is why Adam O’Dell created the [Wealth Multiplier system](. It uses dozens of metrics, including market sentiment, to target the very best stocks to buy now … no matter where markets are headed. That’s why it’s critical you [watch this special broadcast]( today, while it’s still available. --------------------------------------------------------------- Green Zone Journey: Alphabet Inc. Alphabet Inc. (Nasdaq: GOOGL) currently rates a “Bullish” 80 out of 100 on Adam’s Green Zone Power Ratings system. That “Bullish” rating means we expect the stock to outperform the broader market by 2X over the next 12 months. [Turn Your Images On] The stock rates above 90 (considered “Strong Bullish”) on Momentum, Quality and Growth. It’s “Bearish” on Size and Value. The ongoing push into tech stocks, thanks to AI, has kept Google’s rating on solid footing. Over the last 12 months, the stock has gained 22% — even accounting for the tech sell-off and Monday's unfavorable court ruling. And Adam's system has flagged this as "Bullish" for a while now… GOOGL Has Been “Bullish” For the Last 12 Months [Turn Your Images On] The company still has stronger returns and margins than its industry average. Its one-year earnings-per-share growth rate is 27%. These are reasons why the stock remains in “Bullish” territory on Adam’s system. What it all means: The combination of the stock market sell-off and the judge’s monopoly ruling did push GOOGL lower to start the week. Investor rotation into Big Tech — especially Magnificent 7 — stocks since 2022 has pushed already inflated valuations to sky-high levels … and investors started to cool their heels and sell off in July. But the fact remains that we aren't going to stop Googling. From an investment perspective, Adam’s Green Zone Power Ratings system says GOOGL is set to beat the broader market handily from here. Until next time… Safe trading, [Matt Clark, CMSA®]( Chief Research Analyst, [Money & Markets Daily]( --------------------------------------------------------------- Check Out More From Money & Markets Daily: - [WHY INVESTORS SMASHED THE "PANIC" BUTTON]( - [HOW YOU SHOULD HANDLE THE MARKET’S “SUCKER PUNCH”]( - [YOU CALL THIS A “SOFT LANDING?!”]( --------------------------------------------------------------- [Turn Your Images On]( Privacy Policy The Money & Markets, P.O. Box 8378, Delray Beach, FL 33482. To ensure that you receive future issues of Money & Markets, please add info@mb.moneyandmarkets.com to your address book or [whitelist]( within your spam settings. For customer service questions or issues, please contact us for assistance. The mailbox associated with this email address is not monitored, so please do not reply. Your feedback is very important to us so if you would like to contact us with a question or comment, please click here: [( Legal Notice: This work is based on what we've learned as financial journalists. It may contain errors and you should not base investment decisions solely on what you read here. It's your money and your responsibility. Nothing herein should be considered personalized investment advice. Although our employees may answer general customer service questions, they are not licensed to address your particular investment situation. Our track record is based on hypothetical results and may not reflect the same results as actual trades. Likewise, past performance is no guarantee of future returns. Certain investments carry large potential rewards but also large potential risk. Don't trade in these markets with money you can't afford to lose. Money & Markets permits editors of a publication to recommend a security to subscribers that they own themselves. However, in no circumstance may an editor sell a security before our subscribers have a fair opportunity to exit. Any exit after a buy recommendation is made and prior to issuing a sell notification is forbidden. The length of time an editor must wait after subscribers have been advised to exit a play depends on the type of publication. (c) 2024 Money & Markets, LLC. All Rights Reserved. Protected by copyright laws of the United States and treaties. This Newsletter may only be used pursuant to the subscription agreement. Any reproduction, copying, or redistribution, (electronic or otherwise) in whole or in part, is strictly prohibited without the express written permission of Money & Markets. P.O. Box 8378, Delray Beach, FL 33482. (TEL: 800-684-8471) Remove your email from this list: [Click here to Unsubscribe]( Privacy Policy The Money & Markets, P.O. Box 8378, Delray Beach, FL 33482. To ensure that you receive future issues of Money & Markets, please add info@mb.moneyandmarkets.com to your address book or [whitelist]( within your spam settings. For customer service questions or issues, please contact us for assistance. The mailbox associated with this email address is not monitored, so please do not reply. Your feedback is very important to us so if you would like to contact us with a question or comment, please click here: [( Legal Notice: This work is based on what we've learned as financial journalists. It may contain errors and you should not base investment decisions solely on what you read here. It's your money and your responsibility. Nothing herein should be considered personalized investment advice. Although our employees may answer general customer service questions, they are not licensed to address your particular investment situation. Our track record is based on hypothetical results and may not reflect the same results as actual trades. Likewise, past performance is no guarantee of future returns. Certain investments carry large potential rewards but also large potential risk. Don't trade in these markets with money you can't afford to lose. Money & Markets permits editors of a publication to recommend a security to subscribers that they own themselves. However, in no circumstance may an editor sell a security before our subscribers have a fair opportunity to exit. Any exit after a buy recommendation is made and prior to issuing a sell notification is forbidden. The length of time an editor must wait after subscribers have been advised to exit a play depends on the type of publication. (c) 2024 Money & Markets, LLC. All Rights Reserved. Protected by copyright laws of the United States and treaties. This Newsletter may only be used pursuant to the subscription agreement. Any reproduction, copying, or redistribution, (electronic or otherwise) in whole or in part, is strictly prohibited without the express written permission of Money & Markets. P.O. Box 8378, Delray Beach, FL 33482. (TEL: 800-684-8471) Remove your email from this list: [Click here to Unsubscribe](