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

The real value of any tech company today lies in its APIs. Amazon’s stock price is at ridiculous levels mainly because the API of its Amazon EC2 cloud is considered an industry standard.

Google bulls are quick to point toward its API policies for their call on the stock, noting that if the API for Google Plus were opened for use by others, that service might rapidly become bigger than Facebook. Apple bears are quick to note the company’s refusal to fully open its APIs as limiting that company’s growth.

The Foolish Take on APIs

Google is the obvious play for those who love APIs, but it’s not the only one. The rapid growth of the cloud makes Amazon worth looking at, even at these levels.

If Apple Inc. (NASDAQ:AAPL) were to open up use of its APIs in a more robust manner, I’d be a buyer of that stock as well. It remains the sleeping giant of the API space. And I remain highly bullish on Yahoo specifically because that company is now coming to understand the API space, and its value, under a CEO who is also a developer.

The best news is that, thanks to this quick course on APIs, you now know what keeps Facebook stock up, and why Twitter may be the year’s hot IPO. Keep your eyes peeled for API news, for API usage statistics, and prosper.

The article APIs Key To Understanding High-Priced Internet Stocks originally appeared on Fool.com and is written by Dana Blankenhorn.

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