Consider strong Alphabet if you can buy one stock only to retire from it

Consider Alphabet if you can buy one stock only to retire from it

Alphabet

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.

alphabet

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 serviceNumber of usersAchieved year
Google.comMonthly visitors, MAU (monthly active users) 92.5 billion, Google Search has global search engine market share of 92%2020
YouTubeMAU 34.6 billion2020
AndroidActive phones 3 billions, smartphone operating system market share of 85%May, 2021
Office software Google Workspace2 billionMarch, 2020
GMail2 billionMarch, 2020
Google Play2.9 million mobile apps2020
Google Map1 billion 2017
Google One1 billion 2018
Google Pay1 billion 2018
Google Photo1 billion 2019
Google Translation1 billion2021
Chrome browser1 billion2017

Rivals

Alphabet and every giant technology business are heavily overlapped, and almost Alphabet are number one competitor of other technology giants:

CompetitorAlphabet’s rival product or service
AppleAndroid, 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
MicrosoftGoogle 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
AmazonGCP, digital advertisement, Google Search, Google Assistant, Nest, Chromecast, Google One, Google Home, Youtube, Google Shopping, Google Play, Google Pay, Fitbit, Google Healthcare
FacebookDigital advertisement, Youtube, Google Search, Google Photo, Google Pay, Google Home, Fitbit, Google Shopping, Google Workspace
AlibabaGCP, digital advertisement, Youtube, Google Pay, Google Shopping, Google Search, Google Map, Chrome, Google One, Google Home, Google Assistant, Google Translation , Google Workspace
TencentGCP, 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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