I’ve pounded the table on Google parent, Alphabet Inc. (NASDAQ:GOOG) for quite some time, and the reasons for this have been quite obvious. I think the company’s monopoly in the online advertising space is simply too good of a growth business to ignore. Alphabet has continued to churn out above-market-average growth despite its size for quite some time, and I anticipate this is likely to continue for the foreseeable future.
One of the aspects of the company’s business model I really like and haven’t touched on as much is the growth Alphabet has seen in its non-core online advertising business. Alphabet has diversified away from its Google platform in recent years, making a series of acquisitions in growth sectors I think have a ton of potential to grow into real cash flow making machines for the technology giant.
One of these sectors has been wearables. Alphabet has made a commitment to becoming a leader in this space of late, announcing a $2.1-billion U.S. acquisition of Fitbit Inc. (NYSE:FIT) recently. This deal is set to close, though some have concerns about a potential anti-trust suit if the Justice Department in the U.S. decides to follow through on its probe of the transaction. Whether or not such a suit proves to slow down Alphabet’s pace of acquisitions remains to be seen. However, I think Alphabet’s size and growth strategy ultimately works in the favour of investors. I think this is one of the best growth companies in the large-cap tech space, and would encourage investors to consider buying on dips moving forward.
Invest wisely, my friends.
