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I Love Google, but Emotion Has No Place in Your Portfolio

Stocks in this article: GOOG BBRY MSFT YHOO

NEW YORK ( TheStreet) -- For all its faults, Wall Street has honesty you can't find anywhere else. It's what I love about the markets and why I believe the free market works so well to raise the standard of living for all those that embrace it or are surrounded by it.

There is simply no better pricing mechanism than today's exchanges, and in the age of social media and crowd sourcing we can easily forget that the New York Stock Exchange was the original crowd-funding portal and later Nasdaq joined in long before people even dreamed of searching Google (GOOG) for ways to raise capital for various endeavors.

With that said, It's fitting BlackBerry (BBRY) is trading near multi-year lows while Google continues to break record highs with almost every new word I type. It's the difference between a company that refuses to stop innovating and a company that either refused to forge ahead or didn't know how.

Google reported revenue of $14.9 billion, slightly above the analyst's estimates of $14.8 billion, and non-GAAP earnings per share was also slightly above estimates coming in at $10.74. Analysts rushed to raise their price targets after the report, and the median price is now above $1000 a share.

I will caution investors to consider taking some money off the table. There's no question Google has a superb search engine, -- I use it exclusively. However, the real competitive advantage Google enjoys over Microsoft's (MSFT) Bing and Yahoo! (YHOO) is so simple that it's only a matter of time before the playing field is equalized.

Google's revenue driver is its advertising network. It's right there in front of everyone, including the executives at Yahoo! and Microsoft. While it may have taken Bing and Yahoo! years to notice the sun rising every day, they have noticed and they are now making it as easy to buy ads as Google has for a long time.

Offering the ability for Web sites to monetize revenue has eluded Bing and Yahoo!, giving Google a monstrous advantage to build relationships with. I believe that's about to change because Yahoo!'s relatively new (just over one year on the job) CEO Marissa Mayer has already proven she is smart and is consumed with aggressively reshaping Yahoo! through acquisitions.

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