Buy Google (GOOG)

12/30/2008 10:11 pm EST


Jim Jubak

Founder and Editor,

Google is the Internet's dominant search company with about 60% of the global market for search compared to a 15% share for second place Yahoo (YHOO). But (The 2009 launch of Microsoft’s new search engineer Bing has only slight moved the gages.) Google's big technology lead right now is in software that matches the ads that users see on their search page to their queries. The better the match, the more times users will actually click on the ad, and the more conversions--clicks that generate sales or requests for more information, for example. And since advertisers increasingly pay for conversions, the company with the best matching software will earn the highest ad rates. Investors need to remember that while ad growth at Google, Yahoo, Microsoft (MSFT) and other competitors has been extremely rapid before the recent economic slowdown (ad revenue from Google-owned sites climbed 68% in 2007), the Internet advertising market is still in its infancy.
  By clicking submit, you agree to our privacy policy & terms of service.

Related Articles on STOCKS

Keyword Image
Crude March Madness
03/22/2019 10:48 am EST

Energy markets are experiencing their own March Madness, notes Phil Flynn, senior market analyst at ...

Keyword Image
ET: An MLP to Phone Home About
03/22/2019 5:00 am EST

A couple of weeks ago I had an extended exchange with a friend of mine who is an oil man in Oklahoma...