1. What is the name of the company? What is the industry sector?
Google Inc. is a global technology leader focused on improving the ways people connect with information. Google aspires to build products and provide services that improve the lives of billions of people globally. Google’s mission is to organize the world’s information and make it universally accessible and useful. Google’s innovations in web search and advertising have made their website a top internet property and their brand one of the most recognized in the world. Google segment generates revenues primarily by delivering relevant, cost-effective online advertising. Google’s business is primarily focused around the following key areas: search and display advertising, the Android operating system platform, consumer content through Google Play, enterprise, commerce and hardware products.
Google Inc. incorporated in California in September 1998 and reincorporated in Delaware in August 2003. Google completed their initial public offering in August 2004 and their Class A common stock is currently listed on the Nasdaq Global Select Market under the symbol “GOOG.”
2. What are the operating risks of the company?
According to Google Inc. Annual Report 10-K filed with Securities of Exchange Commission (SEC) for period ending December 31, 2013;
“Our operations and financial results are subject to various risks and uncertainties, including those described below, which could adversely affect our business, financial condition, results of operations, cash flows, and the trading price of our common stock.
We face intense competition. If we do not continue to innovate and provide products and services that are useful to users, we may not remain competitive, and our revenues and operating results could be adversely affected.
Our ongoing investment in new businesses and new products, services, and technologies is inherently risky, and could disrupt our ongoing businesses.
More people are using devices other than personal computers to access the internet and accessing new platforms to make search queries. If manufacturers and users do not widely adopt versions of our web search technology, products, or operating systems developed for these devices, our business could be adversely affected.
We generate a significant portion of our revenues from advertising, and a reduction in spending by or loss of advertisers could seriously harm our business.
Our revenue growth rate could decline over time, and we anticipate downward pressure on our operating margin in the future.
We are subject to increased regulatory scrutiny that may negatively impact our business.
We are regularly subject to claims, suits, government investigations, and other proceedings that may result in adverse outcomes.
Acquisitions and investments could result in operating difficulties,