This column was originally published on RealMoney on Dec. 1 at 3:31 p.m. EST. It's being republished as a bonus for TheStreet.com readers.
More than a year ago, when Microsoft ( MSFT) rolled out its new Internet search engine to much fanfare and selling of Google ( GOOG) stock, I penned a column called Google Targets Microsoft With Desktop Search. That was $80 billion of Google valuation and trillions of user searches ago. With Google at a $120 billion market cap and generating billions of earnings now, there's no doubt that Softee (and every other company on the planet) now has Google fully in its sights. But I still believe investors should "flip it" when it comes to that analysis. Google still has everyone, including Microsoft, on their heels, and Google's on the offensive rather than the defensive. As Bill Gates put it recently, "Whether it's Google or Apple or free software, we've got some fantastic competitors and it keeps us on our toes." He calls it toes; I call it heels. As I've outlined throughout 2005, Google is positioning itself to be a source-agnostic gatekeeper to all of the content on the planet, from white pages in Ruidoso, N.M., to "Andy Griffith" reruns to Charles Dickens' Tale of Two Cities. And although the company continues to exploit many new and/or currently unthought-of revenue streams, Google's going to continue to experience
The risks to this stock are certainly higher at today's price than they were when Google was trading for one-third today's quote. But I continue to believe that Google's on offense, and Microsoft, Qwest ( Q), GE ( GE) and so many other companies are the ones backpedaling. Hundreds of billions of dollars are at play here, and there will be lots of winners. Google has been and most likely will continue to be one. P.S. from TheStreet.com Editor-in-Chief, Dave Morrow:
It's always been my opinion that it pays to have more -- not fewer -- expert market views and analyses when you're making investing or trading decisions. That's why I recommend you take advantage of our free trial offer to TheStreet.com RealMoney premium Web site, where you'll get in-depth commentary and money-making strategies from over 50 Wall Street pros, including Jim Cramer. Take my advice -- try it now.
It's always been my opinion that it pays to have more -- not fewer -- expert market views and analyses when you're making investing or trading decisions. That's why I recommend you take advantage of our free trial offer to TheStreet.com RealMoney premium Web site, where you'll get in-depth commentary and money-making strategies from over 50 Wall Street pros, including Jim Cramer. Take my advice -- try it now.