The factors in favour of a rise in the Alphabet share price:
The bullish strategies on the Alphabet share price are increasingly numerous over the long term due to the advantages offered by this stock market asset. Here we offer you the opportunity to learn about the strengths and advantages offered by this group in detail.
Firstly, the Alphabet Group, thanks to Google, is actually the company that dominates the online search sector as well as the sharing of video content, online advertising, mobile operating systems and the use of web browsers. Alphabet also benefits from a great diversity of connected and non-connected products and services which has enabled it to position itself in numerous sectors.
The most profitable activity of the group remains however online advertising with the income generated by Google through this advertising. This income reached over 95 billion dollars in 2017 which represents 86% of the total turnover of Alphabet. Google alone generates over 32% of the total digital advertising sector revenue in the United States; this is equivalent to twice the amount of Facebook. On the international level, Google generated over 32% of the total digital advertising income sector in 2016. Alphabet achieved this through its Adwords, Adsense, and YouTube channels plus the Android operating saystem.
Concerning internet search online, Google Search remains the most popular search engine worldwide for finding information on the internet. This search engine which is the foundation of the company’s success in fact holds 73% of the market share and achieved 92% for the mobile sector in 2018. This dominance of Google in online search is even more pronounced in Europe where it holds over 90% of the combined market share.
The Android mobile operating system is of course a major strong point of the Alphabet Company. Over recent years this has experienced increased interest from users and has become the most popular mobile OS throughout the world. It is used on numerous devices from major brands such as Samsung, Huawei, Xiaomi, OPPO, Lenovo and LG. In total Android powered over 74% of the smartphones on Earth in 2018. Due to this singular popularity of the Android system Alphabet has also been able to develop the popularity of its other products and services such as Google Play, Google Music, Chrome and Google Search.
Due to holding the position of Google as leader in these different sectors, the Alphabet Group benefits from numerous advantages against the competition. Firstly, Google records and analyses a huge amount of information about its users and their online search habits. Using this information the group is able to target relevant advertising and adapt products to user requirements far better than its major competitors. Also, its position as leader enables Alphabet and Google to increase consumer popularity through their excellent brand recognition and reputation. Alphabet therefore is in a very strong position regarding its clients, its competitors and its suppliers.