You’d think a company as successful as Google would be content with being one of the biggest tech companies in the world.
Well, think again…
On top of dominating internet searches and powering the largest video-sharing website EVER, Alphabet Inc. (GOOGL) now has plans to take over the $140 billion video game industry as well.
Here’s everything you need to know about this bold move and how it could score you some easy profits from the sidelines.
Have you ever heard someone say: “just google it”?
There’s a reason why the company’s name has turned into a verb over the years…
Google’s search engine is simply the go-to for obtaining and organizing information on the web. Without it, the internet would be a completely different breed.
The company’s early innovation built it into the tech giant it is today and opened up other opportunities along the way.
Since Google took off, its managed to acquire YouTube, kickstart its own mobile operating system and create the most popular email domain that’s used nowadays.
The list goes on and on, but if that wasn’t enough already the company is now ready to make its mark on the gaming industry!
Big-name brands like Sony (SNE), Microsoft (MSFT) and Nintendo (NTDOY) are currently reeling in BILLIONS every year and Google aims to get in on those profits.
In the same way Netflix (NFLX) disrupted the traditional way-to-watch movies and TV shows with its own streaming service, Google is on track to doing the exact same thing just with video games instead.
We all saw how Netflix’s stock value skyrocketed once it’s platform started to catch on…
It wasn’t too long ago when the company’s shares were priced in the single digits. But as I write this, they’re sitting in the high $300s!
And what’s to say this kind of growth won’t follow Google once its streaming service begins to gain traction?
So far, there’s every indication that it will!
In today’s day and age, video games require users to have a TV, console and then pay to download games to play.
The thing is, Google is offering an even better service called Stadia that doesn’t require any downloads, consoles or TVs for that matter!
As long as you have a device with a screen that’s connected to the internet, you can play video games virtually anywhere.
I’m sure you can see how this throws a wrench into the gears…
It may be bad news for companies who have grown accustomed to consoles and video games going hand-in-hand.
But as an investor, this kind of transition to streaming games over the internet spells out PROFITABILITY.
Not only should you keep a close eye on Google in the days to come, but also public gaming companies, such as Ubisoft (UBSFY) and Activision (ATVI), which have already partnered with Google’s streaming service, Stadia.
Each of the companies, including Google, who are invested in making this “Netflix for video games” a reality have already gone up in price.
As more and more traders catch wind of Google’s next innovative move, shares will be subject to trend upwards even more.
Don’t get left in the dust!
There’s a good chance Stadia will kill the gaming console as we know it.
If that’s the case, then that $140 billion will have to go somewhere and it’s likely to fall into Google’s hands, which will be reflected in its stock price.
