Apple Inc. (AAPL), Google Inc (GOOG): You Proved Your Point, Now Pay Up!

For a while investors wondered if Google Inc (NASDAQ:GOOG) was still a growth company? They seemed to stumble a bit as paid clicks increased, but the cost per click declined. In hindsight, it appears that Google was just protecting their market share. In the current quarter, Google Inc (NASDAQ:GOOG) proved once again that they are still a growth company. However, the company is one of the last holdouts in the technology field when it comes to paying a dividend. Shareholders have been well rewarded with the stock price increasing, but management can do more.

Google Inc (NASDAQ:GOOG)

This is no secret If you know anything about Google Inc (NASDAQ:GOOG), you probably think of a mostly white page, a Google logo, and a search box. While the company is much more than their search engine, it is at the core of what the company does.

Over the last several years, Google has gone head to head with Microsoft Corporation (NASDAQ:MSFT) and Yahoo on search results, and the company still commands over 60% of desktop searches domestically. Google’s Android mobile operating system is the most popular with over 75% market share. Android makes sure that Google Inc (NASDAQ:GOOG) is able to capitalize on search and mobile advertisements, and some have estimated that Google might have over 90% of search on mobile devices.

In recent years, Google introduced Google+ as a direct competitor to Facebook Inc (NASDAQ:FB). While Google+ has a lot of functionality similar to Facebook, I think one of my friends said it best, why do I need this when I already have Facebook?

Newer investments in Motorola Mobile and projects like Google Inc (NASDAQ:GOOG) Glass and self-driving cars could change the company dramatically, but most of what Google does is sell advertisements. With revenue up 31% and paid clicks up 20%, Google is doing just fine.

What about the competition? Seemingly every time you turn around there is someone crying that Google is facing a new competitive threat. Some have said that Apple Inc. (NASDAQ:AAPL)‘s products between the iPhone, iPad, and iTunes would limit the gains Google would see in smartphones, tablets, and online sales. However, Google continues to dominate the mobile OS war, and even if they don’t sell tons of their own product, Google only cares that their services are being used, no matter the device.

Recently, Microsoft Corporation (NASDAQ:MSFT) has launched a campaign warning Google users to not get “Scroogled.” The company brings to light the fact that Google searches your Gmail for key words to help sell targeted advertising. Microsoft’s Outlook does not use this practice, and needless to say the company would love everyone to switch. However, most of this advertising seems to be falling on deaf ears, as Gmail is one of the most popular e-mail sites.