Is Google a Healthy Stock for Your Portfolio?

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With shares of Google (NASDAQ:GOOG) trading around $1,149, is GOOG an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

Google is a global technology company focused on improving the ways people engage with information. The business is based on the following areas: search, advertising, operating systems and platforms, and enterprise. The company generates revenue primarily by delivering online advertising. Google is a search giant with most of the market share, largely because of its execution and delivery. An increasing number of consumers and companies worldwide are coming online, which will surely increase the amount of eyes on the company’s ads and, in turn, advertising revenue. At this rate, look for Google to remain on top of the Internet world.

Google is working to change public perception about its controversial wearable tech device Google Glass. The company published a list of the top 10 myths about Google Glass last week, attempting to clear up concerns about the device being distracting, a means of surveillance, and another cause of humans losing touch with reality in favor of technology, among other charges that have been leveled against the controversial device. “In its relatively short existence, Glass has seen some myths develop around it. While we’re flattered by the attention, we thought it might make sense to tackle them, just to clear the air,” the Glass team said in a blog post. The company claims that having Glass’s screen over the eye allows the user to engage in the real world more than looking down at a phone or computer screen, and so the device is not a “distraction from the real world,” as some have said.

In response to accusations that Google Glass will bring about a 1984-esque dystopia, Google says that Glass is not always on and recording and will never have a facial recognition function despite the fact that the technology for such a function exists. “We manually approve all the apps that appear there and have several measures in place (from developer policies and screenlocks to warning interstitials) to help protect people’s security on the device,” the company said, meaning a developer won’t be able to randomly put a facial recognition or other potentially privacy-violating app on the MyGlass store. “If a company sought to design a secret spy device, they could do a better job than Glass! Let’s be honest: if someone wants to secretly record you, there are much, much better cameras out there than one you wear conspicuously on your face and that lights up every time you give a voice command, or press a button,” the company said.

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