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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Google Turns the Page

NEW YORK (TheStreet) -- Google's (GOOG) CEO reshuffle, completed Monday, could herald a new era of innovation at the Googleplex, as geeky co-founder Larry Page takes the company's reins from Eric Schmidt.

"I think it's a little too early to tell, but there might be a lot more focus on innovation with a technology products guy at the helm," said Yun Kim, an analyst at Gleacher & Company. "I think that things will be focused on product introductions."

Hired in 2001 to provide a mature foil to Page and his youthful co-founder Sergey Brin, Schmidt oversaw an eventful decade during his tenure as CEO. The former Novell chief guided the Internet giant through its 2004 IPO, was at the forefront of its censorship battles in China and managed the firm's push into mobile with its Android operating system.

Google's stock rose more than 440% during the Schmidt era. More recently, however, the search giant's stock has barely moved -- shares are up just 3% over the past 12 months.

Page, the big-vision guy known to push initiatives like attempting to digitize all the world's books, must win back Google's trailblazer status.

"I think that over the last year or so, they have lost a step in how people perceive them to be an innovator," said Charles King, president and principal analyst of Pund-IT Research. "For example, they have been behind the curve in social networking."

While nimbler Facebook and Twitter have racked up more than 500 million and 175 million users respectively, Google is playing serious catch-up. The Silicon Valley heavyweight has struggled to generate significant consumer interest via its Google Buzz, a service that lets users share photos, videos and updates.

King expects to see Google sharpen its focus around new and emerging technologies, specifically in mobile devices and analytical tools. "There's a ton of places where Google could be a formidable player," he said. "I would expect that with Page's return as CEO, Google will be looking further afield for the next big thing."

On the mobility side, King expects to see Google use its Android OS and search engine to provide a host of location-based advertising, reviews and recommendations directly to users' smartphones and tablets. In this way, consumers could quickly trawl through Google's vast troves of data while searching for a specific restaurant on, say, the streets of their locale.

The analyst also sees a huge market opportunity for Google in providing cloud-based analytic services to small businesses, which would offer highly-focused search results based around industries, products and services.

Opening up new revenue streams will be key; Google currently generates around 90% of its revenue from its core search business. One new front Google seems to be hitting hard is mobile payments. The company is reportedly working with MasterCard (MA), Citigroup (C) and VeriFone (PAY) to enable consumers to pay for purchases via their Android devices. For Google, the move would help advertisers more effectively target consumers and allow merchants to push coupons and loyalty schemes to customers.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!
DOW 17,051.73 -48.45 -0.28%
S&P 500 1,973.63 -4.59 -0.23%
NASDAQ 4,424.7040 -7.4420 -0.17%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

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