Topic: Growth Stocks

GOOGLE INC. $1,220 – Nasdaq symbol GOOG

GOOGLE INC. $1,220 (Nasdaq symbol GOOG; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 336.1 million; Market cap: $410.0 billion; Price-to-sales ratio: 6.9; No dividends paid; TSINetwork Rating: Above Average; www.google.com) continues to launch new services to cut its reliance on Internet search.

For instance, it now offers TV and Internet access through its own fibre optic networks in Kansas City, Missouri, Austin, Texas and Provo, Utah. Google’s networks are up to 100 times faster than its rivals’, and it’s considering expanding them to 34 more cities.

More users are watching video-streaming services like Google’s YouTube. As a result, Internet providers want video sites to pay more to compensate for the heavy demand this puts on their networks. Owning its own broadband service strengthens Google’s bargaining position.

In addition, its faster speeds will force rivals to upgrade their networks, which will help drive more traffic to Google’s websites.

Google is a buy.

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