Interestingly, Google Inc (NASDAQ:GOOG) becomes the cheapest stock among the three companies. Google is trading at $882.30 per share, with the total market cap of around $294 billion. The market values Google at less than 14.7 times its trailing EBITDA.
Facebook and Google are still dominating the mobile and tablet market
In the world’s fast growing trend of mobile and tablets, Yahoo! Inc. (NASDAQ:YHOO) must focus its efforts not only on increasing the advertising revenue, but also growing its business in the mobile and tablet markets. Google Inc (NASDAQ:GOOG) is successfully penetrating the mobile market with its leading position in search and the Android operating system. Currently, Google has taken over 75% of the total smartphone market and 56% of the tablet market in the world. Facebook Inc (NASDAQ:FB) has its edge with the ownership of invaluable personal data on more than 1.1 billion people globally.
Consequently, it is much easier for Facebook to draw users into its mobile applications, increasing Facebook Inc (NASDAQ:FB)’s advertisement revenue. Facebook reported growth in its monthly active users by 54% to 751 million as of March. Yahoo!, on the other hand, has just around 300 million users, less than half of Facebook Inc (NASDAQ:FB)’s monthly active users.
My Foolish take
Personally, I think innovation is the key success factor for Yahoo! Inc. (NASDAQ:YHOO), but it will be quite challenging to compete with Google Inc (NASDAQ:GOOG) and Facebook. At the current trading price, Yahoo! seems to be quite expensive now. Going forward, technology investors should go with Facebook Inc (NASDAQ:FB) and Google. With their market-leading positions and their “sticky” platforms, they will continue to dominate the mobile and tablet market in the near future.
The article Following Dan Loeb’s Divestment of Yahoo! originally appeared on Fool.com and is written by Anh Hoang.
Anh HOANG has no position in any stocks mentioned. The Motley Fool recommends Facebook, Google Inc (NASDAQ:GOOG), and Yahoo! Inc. (NASDAQ:YHOO). The Motley Fool owns shares of Facebook Inc (NASDAQ:FB) and Google Inc (NASDAQ:GOOG). Anh is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
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