The common enemy of all tech giants
Alphabet (ticker:s: GOOGL and GOOG) is the lowest-profile company among all technology giants. Why? Because it knows that it can’t be too aggressive, I often describe it as a company sitting on a digital gold mine. Investigate its root cause, because it is the common enemy of all technology giants, so you can’t make too many enemies! It should be the company that has been prosecuted by antitrust lawsuits and fined by the government most frequently in the world in recent years, and as long as a case is filed, it will almost always be established.
Interested readers can refer to the statistics in my blog article “Antitrust and governance faced by Chinese and American technology giants“. It is difficult for Alphabet to escape any antitrust lawsuits by governments around the world ─ ─ because the fact of monopoly is too obvious. According to my investment logic in the blog article “How should investors view companies being included in the antitrust investigation list“, investors should really consider such a company.
Image source: Alphabet
12 products with more than 1 billion users
The reason why I used “Gold Mining Company in the modern digital age” to characterize this company is not without reason. As of the first quarter of 2021, there are a total of 12 products or services registered globally with more than 1 billion people. The closest Facebook is 5, Microsoft has 2, Apple has 2, Amazon has only 1, Tencent has 1, and Alibaba has 2; the total of these 6 companies is only 13!
Just like in Chapter 2 of my book “The Rules of Super Growth Stocks Investing”, when I discussed the company’s moat, I kept taking the Alphabet as an example. The 12 products or services of Alphabet that have more than 1 billion registered users worldwide are:
Image source: Alphabet
|Product or service||Number of users||Achieved year|
|Google.com||Monthly visitors, MAU (monthly active users) 92.5 billion, Google Search has global search engine market share of 92%||2020|
|YouTube||MAU 34.6 billion||2020|
|Android||Active phones 3 billions, smartphone operating system market share of 85%||May, 2021|
|Office software Google Workspace||2 billion||March, 2020|
|GMail||2 billion||March, 2020|
|Google Play||2.9 million mobile apps||2020|
|Google Map||1 billion||2017|
|Google One||1 billion||2018|
|Google Pay||1 billion||2018|
|Google Photo||1 billion||2019|
|Google Translation||1 billion||2021|
|Chrome browser||1 billion||2017|
Alphabet and every giant technology business are heavily overlapped, and almost Alphabet are number one competitor of other technology giants:
|Competitor||Alphabet’s rival product or service|
|Apple||Android, Pixel smartphone, Chromebook laptop, Fitbit, Nest, Google Play, Google Map, Google Pay, Chrome, Google One, Chrome OS, Google Workspace, Google Healthcare, Google Home, Google Assistant, Youtube, Chromecast, Pixel laptop, Pixel smartphone, Pixel tablet, Google Glasses|
|Microsoft||Google Workspace, GCP, Chrome OS, Chrome, Google Search, Google Play, Google One, Pixel tablet, Pixel laptop, Gmail, Google Map, digital advertisement, Google Glasses, Fitbit, Pixel smartphone|
|Amazon||GCP, digital advertisement, Google Search, Google Assistant, Nest, Chromecast, Google One, Google Home, Youtube, Google Shopping, Google Play, Google Pay, Fitbit, Google Healthcare|
|Digital advertisement, Youtube, Google Search, Google Photo, Google Pay, Google Home, Fitbit, Google Shopping, Google Workspace|
|Alibaba||GCP, digital advertisement, Youtube, Google Pay, Google Shopping, Google Search, Google Map, Chrome, Google One, Google Home, Google Assistant, Google Translation , Google Workspace|
|Tencent||GCP, digital advertisement, Youtube, Google Pay, Google Assistant, Google Search, Google Translation, Google Workspace|
Alphabet is the company with largest cash
Alphabet has most cash position on its balance sheet among all listed companies! This is the competitiveness, and it is a very wide moat. Alphabet not only has a ultra low long-term debt ratio of 0.07 (long-term debt is almost zero); as of the first quarter of 2021, it has a total of 135.104 billion U.S. dollars, which is more than Apple’s 69.834 billion or Microsoft’s 125.407 billion, and these numbers are still accumulating rapidly while we are sleeping, and the Alphabet is the company with the most cash in the accounts of listed companies in the United States.
The whole Wall Street is staring at the money, waiting for when it will start paying dividends; the trouble with the Alphabet is not whether it has the ability to pay dividends, or whether it will pay dividends, but when it announces that it will start paying dividends!
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