Spotlight: Google Inc

There are few people in the world who have not heard of Google (NASDAQ:GOOGL), but does that also make Google an interesting investment? Let's take a look at the third quarterly results which they announced today. The first thing we note is that Google did not perform as good as the market expected. Earnings per share (EPS) and revenues stayed behind on expert expectations, mainly due to less network growth and less income due to 'paid clicks'. EPS also stayed behind because of the high research and development (R&D) costs of Google. We do not expect Google to suddenly turn the tide and increase its growth rate drastically in quarter four, but keep in mind that Google is still growing at about 9% year-to-year and is thus still growing substantially. If we then take a look at the long-term expectations for Google we see that because of Google's high innovation costs, we may expect these costs to pay off in the future. Google is not just the search engine on the internet anymore, it has expanded way beyond that and keeps on doing so. Android is a part of social life today and will probably stay around for a while. And what to think of Google Drones and the Google Glass? Moreover, Google is also expanding into the home automation market. It is because of all these innovations that Google is still an interesting stock as they are likely to gain substantial future revenues for Google. All in all, even though the revenue growth rate of Google today is a bit disappointing, the future still looks bright because Google is highly innovative which will create value for Google in the long run. Therefore, we tip Google as a stock you should have in your portfolio.