Fast Money Blog- 7/8/22

As most of you know, Alphabet Inc./Google (GOOGL) is slated for a 20 to 1 stock split on Friday, July 15th. I expect these shares to drop significantly post-split and then resume a bullish run. Since most Wealthy Investor traders will be new to trading Alphabet shares, I wanted to take a moment to acquaint you with the company’s four major revenue streams.

Four Ways Google Makes Money

1.Google Ads: Google makes the majority of its money through their advertising services. These services provide advertisers with ad placements that are directly targeted to the Google users who are most likely to buy their products or services and to give users information that is most relevant to what they're looking for. These ads are found directly on Google searches and YouTube videos.

2. Google Cloud: This segment is comprised of Google's infrastructure and data analytics platforms, collaboration tools, and other services for enterprise customers. The majority of the segment's revenue is generated from fees received for Google Cloud Platform services and Google Workspace (formerly known as G Suite) collaboration tools.

3. Hardware: Over the past few years Google has made their hardware division a lucrative part of their business. Their hardware solutions now include Google Pixel smartphones, tablets, laptops, and earbuds; Google Nest smart home products; and Chromecast digital media players.

4. You Tube Premium Content: YouTube Premium is a paid subscription to get access to millions of YouTube videos without being interrupted by advertising within the content. Currently YouTube Premium has over 50 million subscribers, each paying $11.99 per month.

Once again, since there’s a high likelihood that you will become a long-term Google shareholder post-split, I think it’s important that you understand just where their revenue comes from.

Post-split I don’t recommend you own Google in your retirement account as it will better serve you as a covered call candidate in your cash account.