- Let’s know a little more about the companies that have transformed WWW into a gold mine of sorts for shareholders.
It is no longer a surprise that internet companies are stretching the established boundaries of success in the business world. With multiple revenue models, ranging from pure web sales to interest payments on online transactions, and from paid advertisements to cloud service charges, these companies are on the right track for sustainable success. Let’s know a little more about the companies that have transformed WWW into a gold mine of sorts for shareholders.
Google.inc (NASDAQ: GOOG)
Since it went public in 1998, Google has become a technological giant with a dominating global presence. Expanding its initial domains, it has taken over territories as diverse as social networking, smartphone technology, and even improved on Hosted PBX with its VOIP solutions like Google Voice. With its undeniable contributions, analysts have projected a growth in net worth to one trillion dollars by 2020.
With strategic takeovers and associations, Google.inc stands at a current market value of $521.49 per Class C share, with a market cap of 360 billion. Key statistical figures from the current fiscal quarter set Google at a net profit margin of 20.78%, return on average assets at 10.87%, returns on average equity at 13.51%.
Amazon (NASDAQ: AMZN)
Amazon has dominated the open-market retail system and expanded into a niche segment with Kindle, etc. With the recent release of data from the last fiscal quarter, Amazon sales have improved by 14%.
The spectacular growth is partly triggered by its advancement of its data centers, the growth of a video programming spectrum and faster delivery framework.
In after-hour sales, Amazon has a market share value of $418.09 and a market cap of $195.81 billion. Despite suffering losses worth $57 million recently, Amazon has reported good revenue returns. Analysts expect a PEG ratio of 35.05 in the next five years and a sales growth of 15.30% by December 2015.
SalesForce.com (NYSE: CRM)
Truly emphasizing the importance of a shift in sales models, this cloud-computing company has gained prominence, particularly under the CRM banner. The website claims to increase success rates by 17%, and 39% better communication with their use: impressive statistics that explain their success rates.
Providing solutions for everything from sales, customer services to email marketing solutions, the company is an emerging new game changer in the business world. Currently evaluated at a stock price of $73.79 per share, it already has a market cap of 46.5 billion USD and 5-years (expected) PEG ratio of 3.88. With a mean recommendation of 2.0 from analysts, and impressive avenue estimate of 1.59 billion within the next quarter, the strong buy ration of 1.0:0.5 is compelling.
Facebook (NASDAQ: FB)
Progressing from a market cap of 37.9 billion in 2012, Facebook has grown to an impressive market cap of around 219 billion as of May 2015 – peaking at 238.78billion in March 2015.
Facebook’s recent acquisition of WhatsApp and the global epidemic of social media rage contribute to its prosperity. With revenue (TTM) of 13.51billion and enterprise value of 205.39billion US dollars, it has a price to book value of 5.862 and PEG ratio of 2.091.
Facebook’s free quarterly cash flow of 1.19 billion is a significant contributor to its liquidity, and gross profit margin of 81.5% sets it at a good stage with investors.
Alibaba (NYSE: BABA)
With its first headline-making emergence on the share market, Alibaba became the largest IPO across the world in 2014. Cashing in on the consumer cycle within a specialized retail industry, it has carved out a niche segment for itself.
The current valuation puts it at a market cap of 198.31billion, enterprise value of 189billion and quarterly free cash flow at 3.17billion dollars. With revenue of 11.51 billion, this puts it high on the list of companies operating online. Its shares are currently valued at $80 per share, with a 50-week range giving a high value of $120 and low value of $77.77.
Analyst's Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
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