Portfolio Manager Dan Hanson of Jarislowsky Fraser Global Investment Management says Alphabet Inc (GOOG) will have continued success as advertising continues to shift to the digital side.
Google is a dominant player in search. Because of their scale and technology and ability to continue investing, they’ve built a moat, which we think continues to get larger by virtue of their scale and investment. They’ve got a culture of innovation that we find highly compelling. And what they’re doing is providing, again, value to their customers. If you’re a user of Google Search, you want fast, relevant results in a noncluttered user experience.
But the majority of Google’s revenue is driven by customers of their advertising capabilities. And that’s where we find very compelling the long runway of growth, as the advertising pie continues to shift from traditional media to more effective forms of digital media. That’s a long runway of growth. Google has proven that they can add value to advertisers and demonstrate the value.
Hanson adds that GOOG is run by a management team that has earned his firm’s trust in terms of capital allocation, being stewards of the business and being forward-thinking.
Last year, the transition to the Alphabet Holding Company structure, we think, shows great maturity, and a proactive attitude around running the business, driving greater transparency and accountability to business units. We think it’s the kind of structure that will drive continued success going forward as future initiatives deliver results.
Alphabet Inc (NASDAQ:GOOG) R&D Sets Up Shareholders for the Long Term
June 06, 2016
Home Depot Inc (NYSE:HD) Has Long Runway of Growth
February 14, 2017
Alphabet Inc (NASDAQ:GOOG) a Leader in Sustainability Practices
July 07, 2016
Apple (NASDAQ:AAPL) and Google/Alphabet (NASDAQ:GOOG) are the Top Picks from Jordan and Cornell of Johnson Investment
August 08, 2017
Western Digital Corp (NASDAQ:WDC) Has Runway with Growth of Hyper-Scale Data Centers
April 07, 2017
