Facebook Inc (FB) and Google Inc (GOOG) Face off Again

Even though Apple Inc. (NASDAQ:AAPL) was among the leading companies that benefited from the sharp rise in the mobile market share, its Maps’ application didn’t succeed and was highly criticized. The company is still losing in this front to Google, which has a much higher number of users than Apple’s Maps.

In fact Apple Inc. (NASDAQ:AAPL)’s most downloaded app is iTunes. Apple’s Map app didn’t reach the top-10 apps by the end of 2012. If Apple would have purchased Waze, it might have been able to improve its current Map app and thus make it more popular. But since in the app market Apple is less successful than Google or Facebook and since it’s not the company’s core business I think it was wise of Apple to pass on purchasing Waze for such a huge sum of cash.

Bottom line

Google’s recent purchase will hold back Facebook and Apple from further competing with Google in the Map app market. It will also substantially improve Google’s current Map application, which will lead to more users and thus higher revenue from ads. But I suspect this transaction might be a bit overpriced and won’t return its investment.

Lior Cohen has no position in any stocks mentioned. The Motley Fool recommends Apple, Facebook, and Google. The Motley Fool owns shares of Apple, Facebook, and Google.

The article Facebook and Google Face off Again originally appeared on Fool.com and is written by Lior Cohen.

Lior 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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