Google (GOOGL) stock fell 7.7% in May. Driven by the recent pullback, Google stock has risen 5.9% since the beginning of 2019. Google has the lowest return among FAANG stocks.
Currently, Google stock is trading at $1,106.5, which is 13.0% above its 52-week low of $977.66 and 15.0% below its 52-week low of $1,296.98. Google shares have been trading flat in the last 12 months. Google has risen 1.3% since the beginning of 2018.
Google’s Huawei ban
Google had to suspend its business dealings with Chinese (FXI) hardware giant Huawei. President Trump added Huawei to a trade blacklist last month. The ban restricts supplying any hardware, software, or technical support to the Chinese company.
Google clarified that its Android services will be available on existing Huawei smartphone devices. Huawei is the second-largest smartphone manufacturer. The company shipped ~59.1 million devices in the first quarter, according to Counterpoint Research.
Google sales will be hit marginally if it stops supporting Huawei smartphones going forward.
Google partners with Fiat Chrysler
Fiat Chrysler (FCAU) has selected Google to provide its automobiles with a software system. Google has reportedly built an Android operating system that automobile manufacturers can leverage for infotainment capabilities.
The software will be installed in all Fiat Chrysler vehicles by 2022. Google’s software will enable drivers to access music and videos, receive traffic updates, and much more. The software will enhance the driving experience.
The partnership with Fiat Chrysler provides another opportunity for Google to diversify its business. Google generates almost 85.0% of its sales from advertising.