Please ensure Javascript is enabled for purposes of website accessibility

3 Reasons to Buy Google Now

By Dave Mock - Updated Apr 5, 2017 at 7:56PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

There are lots, but here are three biggies.

Whatever's going on in the market or at a specific company, there are always reasons to consider buying shares in a business. After all, some of the best opportunities in stocks are born from historically bloody times.

Motley Fool CAPS hosts a boatload of opinions from more than 120,000 members on nearly 5,400 stocks, giving good reasons to own -- or sell -- a stock.

A total of 13,913 members have given a bullish or bearish opinion on search king Google (NASDAQ:GOOG). Scouring the detailed information packed in pitches and other comments on Google, here are three of the top reasons to buy Google today:

1. Increasingly dominant
Google's massive and growing lead in search has it laughing at Yahoo! (NASDAQ:YHOO) and Microsoft (NASDAQ:MSFT). And smaller contenders aren't getting much traction; Amazon.com's (NASDAQ:AMZN) Alexa Web Search recently bowed out of the race completely. On the visual side of the 'Net, Google's YouTube is also far ahead in the rankings of video-sharing sites.

2. Well-capitalized
Similar to Apple, Google is a cash machine. The company sits on about $12.7 billion, and it generated $1.73 billion in free cash flow in the third quarter. And while the slowing economy brought hard times to eBay's (NASDAQ:EBAY) quarter, Google still grew net income by 26%, as revenue jumped 31%.

3. Oversold
Like Cisco (NASDAQ:CSCO) and Adobe (NASDAQ:ADBE), Google's shares have plummeted in the past year, now selling at a much lower earnings multiple than before. While the softening ad market has prompted analysts to lower earnings estimates, the company is still distancing itself from its closest competitors. Many investors feel it's oversold, and few expect it to stay this cheap for long.

Of course, there's a lot more devilishness in the details of these buy-side opinions. That's why CAPS is such a great resource to check and balance your own analysis, letting you read the bullish and bearish sides to every stock. To see what the very best CAPS members are saying now about Google, just click on over to Motley Fool CAPS and have a look -- it's all free, and your opinion's welcome, too.

More Foolishness:

On Jan. 12, 2009, Fool co-founder David Gardner, Jeff Fischer, and their Motley Fool Pro team will accept new subscribers to their real-money portfolio service. Motley Fool Pro is investing $1 million of the Fool's own money in long and short positions in a range of securities, including common stocks, put and call options, and exchange-traded funds (ETFs). The Pro team also incorporates proprietary CAPS "community intelligence" data into their research. To learn more about Motley Fool Pro, and to receive a private invitation to join, simply enter your email address in the box below.

Fool contributor Dave Mock dreams of one day having a house that doesn't leak when it rains. He owns no shares of companies mentioned here. Microsoft and eBay are Inside Value selections. Google is a Rule Breakers pick. eBay and Amazon.com are Stock Advisor selections. The Fool's disclosure policy rolls with a crowd of much bigger and tougher policies.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Alphabet Inc. Stock Quote
Alphabet Inc.
GOOGL
$118.84 (-0.72%) $0.86
Microsoft Corporation Stock Quote
Microsoft Corporation
MSFT
$287.02 (-0.74%) $-2.14
Amazon.com, Inc. Stock Quote
Amazon.com, Inc.
AMZN
$140.64 (-1.44%) $-2.05
eBay Inc. Stock Quote
eBay Inc.
EBAY
$48.57 (0.14%) $0.07
Cisco Systems, Inc. Stock Quote
Cisco Systems, Inc.
CSCO
$45.90 (-0.26%) $0.12
Adobe Inc. Stock Quote
Adobe Inc.
ADBE
$434.89 (-0.80%) $-3.51

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
390%
 
S&P 500 Returns
125%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/11/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.