This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Google's Special Relativity

For every action there is an equal and opposite reaction. And while the backlash that has greeted Google's (GOOG) sentimental approach to business overshoots Newtonian rationality, it might have been avoided altogether had the company better grasped its own expanding universe.

Google has begun to emerge in the technology press recently as a successor to IBM (IBM - Get Report) and Microsoft (MSFT - Get Report), an industry-dominating bully that's shaping -- and maybe squashing -- the next decade or so, at least, of innovation.

This is misleading. Google isn't exactly squashing innovation, as nearly everyone will admit Microsoft did during its glory years (everyone but Microsoft, that is). So far, Google has spurred innovation, forcing its competitors to stay nimble to match or beat its every new feature -- witness Yahoo! (YHOO - Get Report) and Microsoft's work on video and book searches -- and helping the more ingenious content creators push their own creativity to the fore of the Web.

In moving from the Age of Microsoft to the Age of Google, the creation of technology has changed dramatically -- and in a way many investors don't quite grasp. If information technology in the 1980s and 1990s resembled a herd of sheep mindlessly controlled by a few quick and intelligent dogs, the industry today -- in particular the evolution of the Web -- resembles a Tour de France race where cyclists are racing to surpass a quick and intelligent leader.

Nor is Google proprietary about its technology. And there's plenty of evidence for this. It has opted for open formats, as it did with Google Talk , an instant messaging software that allows users to interface with other IM clients, be they from Time Warner's (TWX - Get Report) AOL, Yahoo or MSN. What's more, it has shown far more tolerance for open standards than Microsoft and Oracle (ORCL - Get Report).

Of all the complaints lodged against Google in the past year, few have involved charges that the company is bullying people into a second-rate technology. Google may desperately want you to download its toolbar, but it's willing to wait until you feel it's necessary.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,678.70 +6.10 0.03%
S&P 500 2,057.09 +5.27 0.26%
NASDAQ 4,771.7630 +13.8840 0.29%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs