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Google and Visa have made a ground |
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Released on Monday, September 26, 2011, 8:00 AM ET
Pittsburgh, PA (SpeculatingStocks) - Google Inc. (NYSE:GOOG) was trading at $525.51 per share at the markets close. Currently the company’s stock is running within a 52-week range of $473.02 and $642.96, so it’s a long way away from hitting a new record high for the year, but it’s still trading around the middle of its range. The EPS is $27.73 and the stock is priced at 19.72 times earnings—a nice solid number, but a little high for a company as large as Google with a market capitalization of around $169.68 billion dollars.
GOOG’s current beta is 1.15, so it will tend to move with the market and close to its magnitude, but what is really interesting about Google Inc. recently is their movement to align with Visa in a deal which could change the consumer purchasing and retail industry forever.
Google and Visa have made a ground breaking decision to allow Visa customers to place all credit, debit, and prepaid transaction accounts through a new mobile phone applet called Google Wallet. To make it even broader in scope, the two companies have agreed to launch the service on a world-wide scale. This could spell disaster for MasterCard, a Visa competitor, as movement from swipe and plastic card systems moves into the digital era. Perhaps MasterCard will counter with a bid to Apple in the new iOS 5—that would be an interesting game.
Whatever the future maneuver, Visa and Google have something good going for them and if other competitors to both Google and Visa don’t react quickly enough the two will begin to dominate the consumer credit and purchasing industry.
Google’s financials are looking strong with an Acid test ratio of about 5.07 the company can more than cover any current liabilities that it may have. Furthermore it reported a fairly substantial net income last quarter at $2.5 billion and with these new endeavors that should increase. Google may be a good investment moving forward with its honey-comb platform investments and developments and these recent innovations. We believe the company’s forecast seems pleasing.
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