Topic: Growth Stocks

GOOGLE INC. $868 – Nasdaq symbol GOOG

GOOGLE INC. $868 (Nasdaq symbol GOOG; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 331.8 million; Market cap: $288.0 billion; Priceto- sales ratio: 5.5; No dividends paid; TSINetwork Rating: Above Average; www.google.com) now sells Internet and TV services through its own fibreoptic networks in Kansas City, Missouri, Austin, Texas, and Provo, Utah. Download speeds on these systems are up to 100 times faster than other broadband networks. Google will probably bring this service to more cities in the next few years.

The company is also working on new ways to expand Internet access in developing regions like Africa and Asia. It aims to team up with local telecom firms to build new high-speed wireless networks, possibly by using satellites or stationary balloons to transmit signals over long distances.

In addition, Google’s Motorola Mobility subsidiary is developing new low-cost mobile phones and tablet computers for emerging markets.

The purpose behind these initiatives is to drive more traffic to Google’s web sites. That would let the company charge advertisers higher rates: online ads supply 85% of Google’s revenue.

Building its own networks will also make it easier for Google to launch new services, such as selling premium TV shows and movies through its YouTube web site.

Google is a buy.

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