Google the market leader

Google in the morning of March, 10. It came two weeks late to the ongoing index rally.

The monthly chart shows what Google execs admitted already quite some time ago. The stellar growth phase is over and the stock price didn’t move substantially higher since 4 years. The revenues curve (blue) lost its frenetic pace 2 years ago. Quarterly earnings (pink) are growing solidly and witness a stable margin situation. This is the earnings curve of a market leader.

Lately signs of looming problems with various regulators around the world became stronger. Google itself decided to leave China unless current censorship will not get lifted. This was a proactive move, perhaps to demonstrate power to all authorities in the world indicating that Google will not accept every arbitrary decision ranging from copyright to privacy questions without threatening back. It has been seen also as an attempt to dispel privacy concerns of its users. Or was this mainly a marketing action to get positive headlines supporting the Google Phone launch?

So, there are some problems, but still, Google is a growth story.