APIs Key To Understanding High-Priced Internet Stocks: Google Inc (GOOG)

Page 1 of 2

The hottest tech term of our time is the Application Program Interface, or API. It’s time for Foolish investors to get hep to this jive.

An API is simply a programming method for using some larger programming framework. It’s a shorthand. Instead of writing a complex program to address, say, Google Inc (NASDAQ:GOOG) Maps, you use the API and get your job done in a fraction of the time.

Google Inc (NASDAQ:GOOG)Google Maps, by the way, may be the most valuable play on the API board. If you want to know why Google Inc (NASDAQ:GOOG) is trading near its record highs, after languishing for some time, the answer lies in its APIs.

The Value of an API is its Use

APIs are now the most valuable bits of programming real estate on the planet. But their value, as with open source, is based on how many people are using it, and the degree of their commitment to them.

Twitter is now worth $10 billion, pre-IPO, mainly because of its API. Many companies are using Twitter data for various forms of market research – the API makes it easy.

Codingthis compiled a list of the 10 essential APIs back in 2010 and it’s illustrative of how fast this world changes. Most are pretty obvious – Google Inc (NASDAQ:GOOG) Maps, Yahoo! Inc. (NASDAQ:YHOO)‘s Flickr, and Facebook Inc (NASDAQ:FB) are all represented – but some are less so, like Delicio.us, Digg, and Feedburner, which has faded in importance under Google Inc (NASDAQ:GOOG)’s ownership.

In other words, the list of key APIs is subject to change. Investors who track APIs can benefit from seeing the changing landscape.

Google Inc (NASDAQ:GOOG) Dominates the API World

Programmable Web‘s list of the most used APIs lists literally dozens of Google APIs, but the key properties are at the top of the list – Google Maps, Twitter, Google YouTube, Yahoo’s Flickr, Amazon.com, Inc. (NASDAQ:AMZN) eCommerce and Facebook.

Notice a company missing from the above lists? Now you know why Microsoft is trying to unify its Windows 8, Windows RT and Windows Phone platforms around (what else, class) an Application Program Interface.

One great place to track what’s happening in the API world is through the work of Kevin Sundstrom, who writes for Programmable Web. Kevin tracks the new uses of APIs as well as the business of APIs. Through him, for instance, we learn that Facebook’s Instagram is now being used for an iPhone app that tells people what’s happening in their town now, and that Urban Airship Push, an API that delivers specific content to mobile users, has gotten a $25 million capital infusion.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!