Google is one of the companies around the world that is on a hike in terms of growth in the recent years. Google is perhaps a huge market share when it comes to the online world acquiring a new technology every instance. The company is struggling to keep its services in China in the recent months.
Google and China:
The shares of Google are doubtlessly an excellent investment when it comes to long-term investments but we cannot credit China for this as the company strives the most in the Chinese region. When its not about China anymore, Google is perhaps the business with a stronghold and that comes up with extremely high returns with every day passing.
The censorship in China over Google has been a main hurdle in the development that Google can expect from all around the world. China is an excellent online market and the shutters are closed for Google now.
Just because of the issues that are persisting Google in China, the company is unable to focus clearly on the European region that needs proper attention. The European region can certainly get Google improved results. China has further revised the webpage license within the country that would sort out a number of issues that persist between both the parties but still there are subtle chances that Google be kicked out for refusing to censor Chinese Web Search results.
Google is estimated to earn $300 million to $600 million from China that only forms a proportion of the $24 billion annual revenues that it is earning. The comparison of Google with Baidu is quite drastic as the company earns 30% of the share in the China’s search market. The main stakeholder therefore is Baidu. This has set advertisers from around China to be in a fragile state where they need to make sure that they are on the right side with the government and their business strategy is the one that can be catered well in the future.
Google’s Market position:
The shares of Google have witnessed a decline of 26% this year. According to an analysis, if the current price is checked in terms of growth, the price outlines a constant growth of 10.3 percent over a 10-year earnings per share. On the contrary, the last 5 year EPS growth rate has been constantly around 69.4 percent that is tremendous in terms of business. The shares of Google went overvalued for most of the previous years but still they can have excellent perspective with respect to the future of the company in the region as well as the whole of the world.
Google also has got a number of challenges to move past as to get on the top again. The analysts term mobile, display advertising and video site as YouTube to be great challenges in the revenue growth race. Google needs to look into alternative income ways compared to search only from the US region as it has been expected by the analysts about a reverse in the global economic recovery that would result in unemployment and debt crisis.