Stock | Price | 52 Week Range | Marketcap | EPS | Dividend Yield | Chart (24H) | Sector | Employees | Last Updated |
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$0.0000 | 0.0000 | 0.00 | 0.00% | 0 | 6 years ago | ||||
Alphabet Inc. GOOG | $177.95 | 2.15T | 8.95 | 0.47% | Communication Services | 181,269 | 3 seconds ago |
In today’s increasingly digital world, three stalwarts of the internet realm—AOL, Google, and Yahoo—have emerged not just as service providers, but as comprehensive entertainment hubs. Their strategic transformations into multifaceted platforms present a tantalizing investment opportunity that savvy investors should not overlook.
One-Stop Entertainment Conglomerates
In the fiercely competitive Internet space, being simply a “service provider” is no longer enough. Today’s digital giants must serve as all-in-one entertainment hubs. They must offer a diverse collection of services, from news and gaming to social networking and email, to keep users engaged. Think of these companies not just as websites, but as sprawling entertainment ecosystems in their own right.
This need for comprehensive service offerings is more critical than ever. The largest of these internet companies have successfully crossed this bridge, and their rankings in the Portfolio Grader prove that it works.
Strong Sales and Earnings Growth
It’s not just about having a suite of flashy services; it’s about backing it up with formidable financial muscle. According to the Portfolio Grader, all three companies have demonstrated remarkable sales and earnings growth, earning top ratings in recent financial assessments. This positions them strongly on savvy investors’ watchlists.
Investors should take note: the buzz isn’t mere hype. The underlying financial data supports a solid foundation, making these companies compelling investment opportunities. They represent not just interesting prospects but also reliable ones, rooted in strong financial performances.
Undervalued Transformation
Here’s the kicker: analysts have historically underestimated the potential of these companies. This creates a unique window of opportunity for investors who recognize their true value before the broader market catches on. The upside potential here is significant, making these stocks timely buys with attractive valuations.
Editor's Note: Analysis and insight for this article were originally sourced sourced from our friends at InvestorPlace
AOL (AOL)
AOL’s Spectacular Transformation: From ISP to Digital Powerhouse
Remember AOL as just an Internet service provider? Think again. AOL has successfully transitioned into a dynamic entertainment heavyweight, especially after its high-profile spinoff from Time Warner. This transformation has been nothing short of remarkable, positioning AOL as a central figure in the realm of digital entertainment.
Comprehensive Service Offerings
From news and gaming to broader Internet access, AOL’s diverse offerings keep users engaged within its ecosystem. The company now offers a multitude of services designed to keep users within the AOL network. This comprehensive range has analysts scrambling to increase their estimates for the year.
Analysts have consistently underestimated these improvements, but they’ve been scrambling to raise their estimates for AOL’s performance in 2013 and 2014. Rated a “buy” or “strong buy” consistently for the past year in the Portfolio Grader, AOL boasts a “B” grade due to its strong fundamentals.
Analyst Ratings Overview for AOL
Attribute | Value |
Consensus Rating | Hold |
Average Price Target | $14.00 |
Current Price | $8.23 |
Potential Gain | 70.1% |
Number of Ratings | 10 |
Analysts’ Outlook Summary: The consensus opinion among analysts is to hold AOL. The average price target for AOL is $14.00, which represents a potential gain of 70.1% from its current price of $8.23. The stock has received 10 ratings, including buy, hold, and sell recommendations from various analysts.
Investment Potential
AOL’s impressive shift and solid financial metrics make it a standout choice for investors. Its strategic transformation and comprehensive service offerings position it well to continue rewarding shareholders in the near future.
Google (GOOG)
The Mighty Google: So Much More Than Just Search
Google may have started as a simple Internet search provider, but it’s grown into far more than that. From its humble beginnings, Google has evolved into a digital behemoth offering an array of products and services, including news, the Chrome browser, YouTube, and an expansive advertising network.
Constant Innovation Keeps Users Hooked
Google’s relentless roll-out of new and innovative services has attracted and retained a robust user base. On the mobile front, its Android operating system has become a strong competitor to iOS, boasting a significant number of users. This continuous innovation keeps its user base not just satisfied but avidly engaged.
Revenue and Profit Growth
This multifaceted approach has translated into solid revenue and profit growth. Recognized as a “buy” in the Portfolio Grader, Google’s diversified product portfolio and continuous innovation make it a compelling investment with plenty of growth potential. The company’s transformation into a full-fledged mobile and Internet information and entertainment complex has driven its financial success.
Analyst Ratings Overview for Google
Source | Consensus Rating | Average Price Target | Current Price | Potential Gain | Number of Ratings |
Benzinga | Buy | $186.33 | $184.82 | +0.82% (implied) | 3 (Recent) |
Zacks | Outperform | $202.42 | $184.82 | +9.43% (calculated) | 38 |
Nasdaq | Outperform | $191.53 | $184.82 | +0.49% (calculated) | 12-month average |
TipRanks | Strong Buy | $205.08 | $167.00 | +22.80% | 39 |
Summary of Analyst Outlook: The consensus among analysts is generally positive, with a majority recommending “Buy” or “Outperform.” The average price targets suggest significant potential gains for GOOG stock. Analysts have set various price targets, some as high as $220, indicating confidence in the stock’s future performance. Ultimately, the outlook for GOOG stock is optimistic, with multiple sources highlighting potential upside and strong growth potential.
Yahoo (YHOO)
Yahoo’s Bold Moves: Reinventing and Growing User Base
Yahoo has reinvented itself dramatically in recent years. Just last week, it announced the acquisition of the blogging site Tumblr, which brought over 100 million users into its fold. This transformative acquisition represents a significant milestone in Yahoo’s effort to diversify its entertainment offerings.
Diverse, Compelling Offerings
Yahoo’s diversified offerings extend to some of the most widely used sites for sports coverage, fantasy sports, and financial news. These services attract heavy user traffic, cementing Yahoo’s position as a major player in the online space.
Earnings and Top Ratings
Analysts initially did not have high expectations for Yahoo, yet it has consistently outperformed. The company has posted four consecutive positive earnings surprises, making it the top-rated Internet and entertainment company by the Portfolio Grader. Yahoo presently earns an “A” grade for its exceptional fundamentals, reinforcing its classification as a “strong buy.”
Analyst Ratings Overview for Yahoo
Consensus Rating | Average Price Target | Current Price | Potential Gain | Number of Ratings |
Hold | $41.20 | $34.41 | +19.64% | 11 |
Summary of Analyst Outlook: Yahoo (YHOO) is currently rated with a consensus of “Hold” by multiple analysts. The average price target is $41.20, with a potential gain of 19.64% over the current price of $34.41. This potential gain reflects the combined forecasts of 11 analysts.
The transformation of AOL, Google, and Yahoo into diversified entertainment conglomerates signals a significant and compelling investment opportunity. Their consistent financial performance, strategic innovations, and extensive service offerings present considerable upside potential. As analysts continue to recognize the full extent of these companies’ transformations, investors who act now stand to gain substantially.