This Day On The Street
Continue to site right-arrow
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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Google Reader Shutdown Creates Opportunities For These 3 Companies

When Google (GOOG) announced a spring cleanup, Google Reader was included as one of the services that would be shut down. Other products being shut down include Building Maker and Cloud Connect. Google Voice for Blackberry (BBRY) is being retired too, though solid HTML5 support on Blackberry devices should make the impact less painful.   [More Tech: Windows Blue: Briefing on the Next Windows Platform


Ending Google Reader and the other product makes sense. The apps do not make revenue. Yet as an avid Google Reader fan, the shutdown will lower interest in using Google+. Google’s effort to simplify its product offering might have the opposite impact for its loyal user base, creating an opportunity for competitors to gain users.

In Google’s defense, Google may have cut Reader due to the cost of complying with privacy. Collecting user preference data, such as reading interests, +1’s, and favorite articles is a way for Google to monetize Google Reader. Additional costs would be required in managing and addressing concerns for user privacy.

Investing Ideas

1. Facebook, Inc. ( FB): FB, which is shifting its advertising strategy, could build an RSS reader that allows users to choose the content they want on their profile. Facebook is experimenting with ad posts on the main news feed, and increasing its focus on mobile ads. Having a website content aggregator like Google Reader would solve its problem of a declining active user base.

2. Microsoft Corporation ( MSFT): Microsoft could build an RSS reader that integrates with and/or its Bing search engine. By winning over loyal Google Reader users, Microsoft gains Bing users, making its online Office offering more attractive as compared to Google Docs, and could promote Skype (which competes with Google Hangouts).

Investors might want to be less interested in:

3. Google Inc. ( GOOG): Since the announcement, Google shares dropped steadily, down 6% from the $844 peak reached at the beginning of March 2013. The mantra that “less is more” may not apply with Google Reader closing. Google Reader was a preferred gateway for accessing content for other popular sites. Shutting this down will cut a mature user base, and will indirectly hurt the Google+ growth strategy in the short term.

Comparative Chart   [ Analyze These Ideas:  Compare analyst ratings to annual returns  for stocks mentioned]

Written by Chris Lau, Kapitall Contributor 


Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr 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

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

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!


DOW 17,678.98 -97.14 -0.55%
S&P 500 2,057.72 -10.17 -0.49%
NASDAQ 4,862.8560 -38.0290 -0.78%

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