Research Paper Example on Summary of Google Inc

Introduction

Google Inc is an international company that designs, manufactures, and distributes electronic products such as computers, iPhones, iPods, and beats. Google Inc is a global brand that most people use when referring to quality electronic products (Cassin, 2017). The products of Google Inc are differentiated from other electronic producing companies across the globe, and it is popular in various marketplaces today. Through the production and distribution of the iPhone, the company has attracted several customers more than its competitors. The products of Google Inc have unique features such as high technology, design simplicity, and a feeling of luxury. The products of Google Inc are ahead of those of the competitors in terms of quality and functionality. They are unique and attractive. Although there are very many competitors of Google, it is still capable of developing high demand for its products. It achieves all these through product differentiation, innovative promotion, and advertisement. Google Inc also can develop high brand loyalty and exploit hype at the time of launching new products.

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Statement of How You Chose to Invest and Why

Making an investment decision is not easy, but once it has been made, it is tough to decide which kind of investment portfolio to spend. In most cases, a low price earning ratio is always better than a high price earning ratio. Therefore it is necessary to diversify the investment in different sectors. With very many numbers of stocks to choose from, it is tough to identify the best equity investment among the many. Reviewing and evaluating the financial statements for every company is very cumbersome to determine the business organization with a favorable net debt position and ever-increasing net profit margin. At the same time, identifying an investment portfolio based on criterion inputs of a stock screener also has many errors and does not represent the company correctly. The first thing to do when choosing to invest in a given portfolio is to set personal goals. The first course of action when selecting a stock is to determine the purpose of the investment portfolio. Because investors are usually expecting to earn a high income and preserve capital, the investor must have various investment criteria. Income-oriented investors are more attentive to firms that grow slowly while those who focus on low-risk tolerance and are concerned with capital preservation expect to invest in established blue-chip companies. The investors who look for capital appreciation target business organizations of various market caps and life cycle stages. An investor should be alert to current market events and opinions. Reading logs, magazines, and other online financial news is a way of identifying a stock to buy from the stock market. This strategy is essential in ensuring that the investor has both present and future market information that the investor can use to predict the future performance of the company.

Observed Stock Patterns of Google

The stock pattern of Google Company fluctuates daily. It climbs slips and then rises again to reach the maximum level. The stock of Google jumps when there is information in the market that its prices are likely to increase in the future (Hirschey, 2003). This condition attracts many investors to demand the stock of Google. The increase in demand raises the price of stock thus making the stock have a climbing pattern. The stock pattern of Google Inc also stagnates sometimes when no information can be used to predict that the price of Google stock is likely to increase or decrease in the future. The cost of the stock of Google Inc also falls when the demand for its shares goes down (Drori, 2003). This can be influenced by the action of underwriters of the stock of the company. Underwriters are people who guarantee a minimum subscription of stock. When the minimum subscription is not achieved, underwriters purchases all the shares to create a good demand for the stock which has undergone underwriting. The stock of Google is bought by underwriters which increases the demand for stock in the market making the price of the stock grow. When there are low demand underwriters, start selling the stock, and this reduces the demand thus making the stock pattern fall and rise at some points.

What to do Differently

I decided to evaluate the stock of the company before investing in it. This step is essential in ensuring that I spend on a stock that can generate high investment returns at the end of the financial year. I also decided not to follow the pattern of share prices in the stock market when choosing the most appropriate stock to invest in. I decided to evaluate the stock using the intrinsic value approach which is another important method of assessing shares. I would go in this direction as opposed to others who depend on the information received in the market to predict the price of shares or determine the share value. I would decide to use the intrinsic value approach to evaluate shares because the market price of stock alone cannot indicate whether the stock is undervalued or overvalued (Jansen, 2016). It cannot also predict whether the business organization is profitable or not. Under that condition, I would like to use this approach because it can predict whether the stock price is undervalued or overvalued which is vital in identifying the stock of a profitable company. Before investing in any investment portfolio, it is also necessary to determine the viability of every project to determine if it can generate a return on investment. This will reduce the chance of investing in a company that cannot provide value to the investor.

I came out ahead as compared to the initial value of $5000 which I decided to invest in the stock of Google Inc. I chose to spend in stock because the information available in the market can be used to predict whether the investment will be profitable or not in the future. It is unnecessary to invest all the money in the stock of Google alone, but I would like to invest in the stock of other companies such as The Coca Cola Company to diversify investment to minimize both total and financial risks which every business is likely to face (Lee, 2015).

Conclusion

I have gained various insights from the project. The project taught me that it is essential to diversify investment. This is because diversification is a process that minimizes the risks that the business is likely to face. I also gained an insight that it is not exclusively right to over-rely on the market price of shares of stock when choosing either to invest in shares or bonds. It is also vital to conduct stock valuation using an intrinsic value approach to determine if the price of the stock has been undervalued or overvalued. This helps in determining the best company to invest in based on its ability to generate profits.

References

Cassin, B. (2017). Google Inc.: From Search to Global Capital. Google Me. doi:10.5422/fordham/9780823278060.003.0003

Drori, O. (2003). Display of Search Results in Google-based Yahoo! vs. LCC&K Interfaces: A Comparison Study. Proceedings of the 2003 InSITE Conference. doi:10.28945/2623

Hirschey, M. (2003). Valuation effects of patent quality. Tech Stock Valuation, 157-181. doi:10.1016/b978-012349704-8.50021-0

Jansen, B. (2016). Intrinsic Value in Stock Return. SSRN Electronic Journal. doi:10.2139/ssrn.2840035

Lee, S. (2015). Uncertainty, Capital Investment, and Corporate Diversification. SSRN Electronic Journal. doi:10.2139/ssrn.2591750