Google Planning on Using $50 Billion To Invest
Posted: April 24, 2013 by Alex Chan
Apple is currently the leading company on the market with nearly $137 Billion in cash. On the other hand, Google has "only" $50 billion in its pockets and they're planning to make some new investments in the second quarter of 2013.
What makes the two companies extremely different is that Apple keeps holding onto its cash while its stock keeps falling – reaching $400. On the other hand, Google's shares are reaching $800 and it is constantly growing by using its money to invest it in profitable companies. Since Google's stocks went public on the market, the company has spent around $11 billion to buy around 240 smaller companies. Some of those companies were small and cheap while others were large acquisitions such as YouTube, DoubleClick and Motorola. All the companies that were acquired brought in some new technology that helped in the designs of the Android software, Google maps, many other features offered by Google today.
Like many other US companies, Google too keeps most of its money "across the pond" to avoid high taxes. Since offshore money cannot be returned to the US without being taxed, Google is planning on investing it in new data centers located throughout Europe, more precisely in London, UK.
Google's investment strategies have brought the company more ground-breaking products and made the company a leader in some areas of technology. The popularity of its search engine, YouTube, Google Maps, and other websites, are bringing the company around $10 billion each year. With cash flowing steadily from many directions, it is only normal that the investors want to invest in some ground-breaking new technologies through Google.