by Ian Wyatt, editor $100k Portfolio
Sometimes it's easy to overlook the obvious. Popular big-name stocks can
be considered crowded trades in which the big money has already been
And the mighty can certainly fall, as we've seen with Apple, which tumbled 25% in just two months in 2012. But unlike Apple, Google
) has found its legs and recovered some ground after a 15% tumble last fall.
Of course, Google is a huge name in the Internet advertising and search
world with little competition. And Google is gaining a strong foothold
in the smart phone world thanks to the success of its Android.
Although Apple has a respectable market share lead in the U.S., Android leads comfortably in Europe, China and Brazil.
while Apple may be considered the undisputed leader in the tablet
market, Google is closing the gap and now is expected to have around 43%
of that market. And don't forget its YouTube and Gmail franchises.
the financial numbers don't dazzle, they suggest that solid growth
should continue. The company is sitting on $45 billion in cash and
carries little debt.
Earnings are expected to grow 16% annually
for the next five years. And the recovering economy should continue to
feed advertising dollars to the bottom line.