NEW YORK (TheStreet) - One of the things I have always embraced is the idea that the most successful investors are the ones who remain in a state of perpetual worry.
Meaning they are always paying attention while taking nothing for granted. Call it paranoia, but these are the type of investors where due diligence never escapes.
With this sort of mindset, they tend to invest in companies that model their personalities -- companies such as Apple (AAPL) and Amazon (AMZN) that are always pushing buttons and never resting on their laurels. It's hard to find such companies outside of the tech sector, a known cutthroat industry where rivals love nothing more than to put each other out of business.
This became evident when search giant Google (GOOG) announced it has acquired Wildfire, a company that specializes in social media marketing.What is clear in this deal is that Google smells fear in the air and sees blood in the water, both thanks to its chief social media rival Facebook (FB). Google seems determined not to let up the pressure of its foot on Facebook's neck. The competition has now become intensified. After Apple ditched Google maps from its mobile devices in favor of its own in-house mapping program, Apple also angered Google by supporting Facebook, integrating the app into its soon-to-be-released IOS6 -- seemingly to put a dent in Google+, Facebook's main competitor from the standpoint of ad revenue. So without question, Google's acquisition of Wildfire is a way to better leverage and monetize its current 250 million Google+ users while also seeking to draw more attention from advertisers. Although financial details of the deal have not officially been disclosed, sources say that it is estimated to be $250 million, although recent reports have suggested it could be worth as much as $400 million. I think this is a deal that Google had to make, one that continues a recent pattern of social media acquisitions from Oracle (ORCL) as well as Salesforce.com (CRM). The question is, will this deal generate the return that Google expects and will it help its Google+ platform gain the level of traction necessary to truly put a dent into Facebook?
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- 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 + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV