The Bright Future of Google (NASDAQ:GOOGL)

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By Thomas Copeland on November 5, 2014 Company

This year around, Google (NASDAQ:GOOGL) lagged behind in terms of stock price runs, while competitors like Facebook (NASDAQ:FB) and Microsoft (NASDAQ:MSFT) witnessed growth. Microsoft (NASDAQ:MSFT) price share rose up by 23%, and that of Facebook (NASDAQ:FB) by 35%, whereas Google (NASDAQ:GOOGL) was stagnant. This was surprising for many, as the company had a market capitalization worth $377 billion, and its share revenues grew by 20% as compared to last year, as well as a 14% rise in non-GAAP earnings per share. Even then, Google (NASDAQ:GOOGL) wrapped up the year disappointedly. But speculations are that this could change around any time now, as Google (NASDAQ:GOOGL) is taking the leadership position amongst the competition.

At this stage, many consumers are doubtful of the idea of Internet of Things (IoT), but for companies it is very real and very soon will be a part of households. IoT is eventually expected to bring smart homes into play. It is expected that the device will be installed in over 2 billion houses by 2019. In terms of revenues, it promises figures as high as $61 billion this year, and a striking $490 billion by 2019. Next in play is introducing energy related units, like smoke detectors and thermostats. Google (NASDAQ:GOOGL) has already made headway with its $3.2 billion acquisition on smart thermostat and smoke detector manufacturer. Other deals to buy security camera provider Dropcam is also in the pipeline. All these initiative and deals place Google (NASDAQ:GOOGL) as the market leader for smart homes.

Just how there once was the battle for cloud, now a battle for smart homes is underway, as the sales estimates and price hike are just too impressive to pass on. Another feature that will benefit Google (NASDAQ:GOOGL) in the long run is the amount of data, home devices will provide for digital advertising. An area that has contributed in Facebook (NASDAQ:FB)’s success, and Google (NASDAQ:GOOGL) has picked it to end its stagnant stock price.

With the launch of smart homes, Google (NASDAQ:GOOGL) is expected to get access to user information that Facebook (NASDAQ:FB) can only dream of. Consumers’ personal information will provide endless opportunities for Google (NASDAQ:GOOGL), to explore and cater to.

There is a huge possibility that if lost in these latest developments, Google (NASDAQ:GOOGL) might lose sight of its vision and core business. As the company gets itself wrapped up in driverless cars, smart glasses or health nanotechnologies, consumers seem to be getting confused by these unrealistic ventures. However, smart homes can give Google (NASDAQ:GOOGL) a jump start in the competition, translating into high revenues. So why wouldn’t Google (NASDAQ:GOOGL) look into this area of growth and invest into it when it promises attractive results that could eventually turn the company around. Its stagnant stock price might even start to hike in the near future. It also keeps on making effort in its original line of business, and has not totally abandoned it. With such exploratory plans in the pipeline, the Google (NASDAQ:GOOGL) stock seems an attractive buy at this stage.