This Day On The Street
Continue to site
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

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

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 - Get Report) 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.
[Read: <a target="blank" data-add-tracking="true" href=""><em>Google Hits $1,000, All-Time High: What Wall Street's Saying</em></a>]

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.
[Read: <a target="blank" data-add-tracking="true" href=""><em>Google's Secret Sauce Is Larry Page</em></a>]

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.
1 of 2

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
Only $9.95
14-Days Free
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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
GOOG $645.44 0.62%
AAPL $111.31 0.48%
FB $92.80 -1.29%
TSLA $241.46 -1.91%
YHOO $30.96 0.34%


Chart of I:DJI
DOW 16,790.19 +13.76 0.08%
S&P 500 1,979.92 -7.13 -0.36%
NASDAQ 4,748.3610 -32.9030 -0.69%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs