The recent hype around an online Pokémon game showed one thing: that investors still have Alphabet Inc(NASDAQ:GOOG) stuck in a box labeled “online advertising.” They don’t yet see GOOG Stock for what it truly Is.Does Google make most of its money from advertising revenues? Absolutely, but that isn’t what made the company invest in Niantic—a software developer that came up with the “Pokémon Go” game—and it isn’t what will drive the company’s growth in the future. Google stock has been one of the best performing in history. Since the company’s initial public offering in 2005, share have surged over 1,200%. A $1,000 investment in GOOG stock would be worth over $12,000 today.Yet, GOOG stock’s valuation is not that high. Trading at $680.04 per share, Google stock has a price-to-earnings multiple of 27.67X. If you use its expected earnings for the next calendar year, you’d see that the company is trading just above 17 times its forward earnings. If things turn to be the same there will be some one to take over for GOOG Stock.
There is no connection, GOOG has no relation to Niantic anymore and the IP to Pokemon belongs to Nintendo. Niantic was spun off completely in 2015.
