It's been quite a while since we've heard anything about Google Fiber; that is, until today. Google announced today that their internet and television services will be moving to a new city. So below, we'll talk about the city it's headed to next, the details of Google Fiber, how the news affected the stock today, what we can expect to see moving forward, and how binary options traders can take advantage of the trends. So, let's get right to it…
San Antonio Is The Lucky City That's Getting A Fiber Optic Upgrade
Google announced today that they are now working to bring Google Fiber to San Antonio, Texas. It's a good move for the company considering that San Antonio is home to 1.4 million residents; and building in popularity for technological advancements. However, bringing the Fiber Optic network to San Antonio is no small task. In a recent blog post, Google's own Mark Strama wrote the following about the move…
“We'll work closely with city leaders over the next several months to plan the layout of over 4,000 miles of fiber-optic cables – enough to stretch to Canada and back – across the metro area… This is no small task, and it will take some time, but we can't wait to get started.”
What Is Google Fiber & How Is It Profitable For The Company?
Google Fiber is a fiber-optic network that allows for high speed internet along with paid TV services; and when I say high speed, I mean it. Through the fiber-optic network, Google promises that its customers will receive speeds at a minimum of 1 gigabyte per second. Compared to Comcast's fastest connection at 105 megabytes per second; that's about a hundred times faster than the fastest option available otherwise. At those speeds, it would be suggested that the service would be incredibly expensive. However, it's anything but! As a matter of fact, Google Fiber customers will pay $70 per month for high speed internet access; about what competitors charge for their highest speed connections. When it comes to television service, customers have the ability to add it on for $50 per month; also incredibly competitive when compared to industry leaders. There's also one more option. Customers will also have the ability to get free internet services. All they need to do is pay a one-time installation fee of about $300.
How The Market Reacted To The News
As we would expect any time something positive comes out about just about any publicly traded company, Google is having a strong day in the market today after the release of the news. After a relatively solid day, the stock closed the day off at $643.78 per share after gaining 2.31%.
What We Can Expect To See Moving Forward
Moving forward, I'm expecting to see more positive news out of Google. First off, moving their services to San Antonio is definitely going to yield revenue. However, that's not the only key here. Another thing to remember is that the company has a major goal of connecting more people to the internet; after all, more online users equates to more Google searches. So, by offering a free internet service through their network, the company is technically killing two birds with one stone.
How Binary Options Traders Can Benefit From The Trends
Considering the fact that we are expecting to see more growth from Google, binary options traders will be able to realize profit through call options. Therefore, traders should look for points at which the stock reaches support, then purchase call options to ride the trends up to profits.
What Do You Think?
Where do you think Google is headed next and why? Let us know in the comments below!