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Finding the Next Google

Stocks in this article: GOOG AAPL

NEW YORK ( TheStreet) -- Like looking for a diamond in a sea of glass, investors and analysts comb through the tech sector hoping to find a company that might perform like Google (GOOG).

One of these days the formula, the secret strategy for uncovering a technology company whose shares could soar by 1,000% or more will be found. That's the good news. The not-so-good-news is that we haven't found it yet and are still compiling the "ingredients" and the clues.

If you'll bear with me while I wax bullish, all we have to do is try to understand what made GOOG the superstar that it is and what characteristics (including its remarkable culture) it possesses, and we will have made a giant leap in the right direction.

The latest news about Google is that it's now the most widely owned stock among the 50 largest actively managed U.S. mutual funds. According to a March 7 Bloomberg report, the world's largest search engine company beat out Apple (AAPL) to claim the top spot.

The article pointed out that... "Google's shares are now trading at about 25 times profit, compared with a price-to-earnings ratio of less than 10 for Apple, according to the data compiled by Bloomberg. That gap is at its widest since June 2005, two years before competition between the two companies in mobile devices began to intensify."

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This is how great technology companies leap ahead of the competition and separate themselves as the undisputed leaders. Google's smartphone software controls around 70% of that market. Its Chrome browser has been taking off as well. As the company's nifty Web site reminds potential users "Browse fast with the Chrome web browser on your Android phone and tablet. Sign in to sync your Chrome browser experience from your computer to bring it with you anywhere you go."

Here's a two-year visual illustration of how Google has become the new "darling" of the technology world. Its shares have done so amazingly well compared to Apple's stock. Many of us were surprised by Google's ascent above AAPL.

So which company will be the next Google? It might be one that is an innovator in products and services for tablets, smartphones, apps and digital advertising. The apps business is still in a state of flux as users around the globe upgrade to the latest mobile devices. Savvy tech buyers are still deciding if they want to spend money on apps that impress them, or go for the hundreds of thousands of free apps.

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