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
TheStreet Open House

Buy These 5 Rocket Stocks to Beat the Market

Stock quotes in this article: PSX, GOOG, WFC, WYNN, GRMN


It's easy to forget that, ultimately, Google (GOOG) is an advertising company. The $382 billion tech firm might have its hand in a wide spectrum of different businesses ranging from searches to smartphones, but at the end of the day, the firm's goal is to get more eyes on the paid ads that contribute around 80% of Google's total sales. It's been a slow start to the year for GOOG: Since the calendar flipped to January, Google has effectively traded flat.

>>4 Huge Stocks to Trade (or Not)

Google currently captures approximately 60% of the world's Web search traffic, an astounding market share that gives Google some important advantages over the competition. Part of that success comes from the technology that Google has been able to deploy in a "post PC world." By giving users high quality experiences with apps and mobile devices, it's able to keep users playing within the Google sandbox, all the while serving them ads.

Desktop search remains the holy grail of Google's business. Unlike the ad networks, in which case Google must pay a royalty to content owners, sponsored search comes with huge margins and customer acquisition costs are effectively nil thanks to the strength of the Google brand. While any new investments will likely come with some level of margin dilution, high levels of profitability today and a whopping $59 billion cash and investment position help to offset the risks.

Make no mistake, Google isn't "cheap" right now -- but it's well-positioned to get even less cheap in the coming months.

2 of 6

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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 16,804.71 -238.19 -1.40%
S&P 500 1,946.16 -26.13 -1.32%
NASDAQ 4,422.0850 -71.3050 -1.59%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

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