Annual Report Project 2

Annual Report Project 2 - Accounting 115 Annual Report...

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Accounting 115 Annual Report Project “We began as a technology company and evolved into a software, technology, internet, advertising, and media company all rolled into one.” Summary Google has brought together the brightest minds of our era to create powerful and unique products and systems, which have translated into enormous wealth to their investors. The company is now a large corporation trading at one of the higher prices on the NYSE. They have reached this point with continuous growth. The ideal investor of this company is one who holds a large amount of capital and is looking for steady to mid-rate growth on their earnings. The ideal investor may also be looking to stray away from the kind of risk present in high-growth and start-up companies. The most attractive attributes of this company are seen on a multi-level platform; however the most exciting attributes come in Google’s continuous growth ability and innovation. Through a team of some of the world’s most intelligent men and women, Google has been able to harness innovation and translate this technological creativity into inordinate growth and earnings. One of their newest creative ventures is the perusal of an entirely free mobile broadband network. This would allow consumers to use the network for free in exchange for advertising space over a mobile network. The company has been able to harness fairly rapid growth on a continuous level. This in itself is one of its most attractive qualities to investors worried about constant dips in stock prices, a difficult task to coordinate and control for investors looking for consistent returns. Further, the ideal investor to this company is one who is focused on returns through share price increase and not dividends as the company has not declared dividends to date but has shown impressive share price growth. The greatest value of this company to investors at this point is its prospective ability to hold this type of growth. The company is constantly improving
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its current segments while acquiring and creating new segments and opportunities. An ever- increasing product line spanned over different sectors signals to investors the prospect of an emerging powerhouse conglomerate. Fortunately, the weaknesses of this company are limited by its creative culture. The major weakness of this investment stands at the investor’s need for high capital investment. The stock is trading at very high price at this point, which is detrimental to the investor with low capital stock. The other major concern for investors is the company’s exposure to international operations. This exposure leads Google to become subject to increased risks which could harm its business, financial condition, and overall operating results. The company is also a relatively young company which may have to face competition from more established industry firms expanding into Google’s segments.
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