Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

What Hedge Funds Think About Internet Search Stocks

Page 1 of 2

Despite the massive potential revenue that could be earned from building a successful search engine, there continues to be little competition in the sector, as no one seems willing to even attempt to tackle industry giant Google Inc (NASDAQ:GOOGL), which has dominated search since its inception in 1997.

Just how badly has Google trounced the competition? From 1997 through the end of 2014, the search engine giant has controlled 88.2% of the market according to Statista. In terms of unique monthly visitors it more than triples the visitors of its closest rivals, Yahoo Search and Bing, according to statistics collected by eBizMBA. Needless to say, there has been little movement in the search engine sector for quite some time. Not even the mobile revolution could meaningfully impact overall search engine market share.

Google, is GOOGL a good stock to buy, contacts manager, update, redesign, Material Design,

However, that’s not to say things can’t change. In fact, we reported this week on the fact that Apple Inc. (NASDAQ:AAPL) is nearing a very important decision that could have a large impact on Google’s search engine market share and revenues, that being whether to renew its contract with Google to retain the search engine as the default on Apple’s Safari browser, which has over 50% market share in the mobile sector. It’s estimated that as much as 10% of Google’s gross revenue could be riding on the contract.

Of course, it’s hard to judge investor sentiment solely on the search engine side of any of the top search companies, as even Google Inc (NASDAQ:GOOGL) itself has drastically diversified its business over the years, and gets only a portion of its revenues from the search engine side of its business. Nonetheless, let’s take a look at the current stats of the top three internet search stocks, and the investor sentiment that surrounds them on the whole.

Note that while we don’t recommend following hedge funds into such large-cap stocks, as they are much more successful at generating returns from their top small-cap picks, it is always useful to see where the smart money is going, especially if you do want to supplement your portfolio with some less volatile, large-cap picks.

We’ll start with Google Inc (NASDAQ:GOOGL), which continues to dominate internet search. In January 2015, its market share of overall internet searches stood at 88.10%, a slight dip from the 88.99% it controlled in January, 2014. Google gets 1.10 billion unique monthly visitors to its search page, and is the number-one most-trafficked site in the United States and the world according to Alexa.

However, in addition to the forthcoming Apple Inc. (NASDAQ:AAPL) contract decision, Google also recently lost its default search status in Mozilla’s popular web browser Firefox to Yahoo! Inc. (NASDAQ:YHOO), which went into effect on December 1, though only in North America. The results were an immediate drop in Google’s search share in the region, to less than 75%, and a boost to Yahoo’s.

Google Inc (NASDAQ:GOOGL) was one of the most popular stocks among hedge funds at the end of 2014, with 120 funds invested in it, though that number fell from 137, while invested capital fell to $6.11 billion from $7.46 billion. Could the loss of default status in Mozilla affected some of that fleeing? Boykin Curry of Eagle Capital Management was the largest investor in Google among tracked funds, with 1.12 million shares, a 33% increase during the quarter. On the other hand, Crispin Odey’s Odey Asset Management sold out of its 175,600 share position during the quarter.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

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 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!