Retail Could Boost These Two Stocks: Google Inc (GOOG) and Under Armour Inc (UA)

Page 2 of 2

The stores have allowed Microsoft to highlight the Xbox and its ecosystem as well as its Windows Phone and Surface tablet. Google could conceivably do the same and may benefit more, particularly given the sea of Android devices on the market. It also helps that the search giant already has some experience selling branded devices, offering its Nexus line of devices through its own web portal, even if it initially received a tepid response.

Highlighting its own devices could help them stand out from the pack, though it may put current hardware deals at risk. Currently Google relies heavily on OEMs to produce Android and Chrome devices; pushing their own devices too much may jeopardize longterm market share. A store front would also give Google the opportunity to have much finer control over the sales staff surrounding their products and allow the company to better build an experience around their devices. This might become a particularly decisive advantage as Google Glass hits the market, allowing Google to have a direct connection with each potential customer for the device.

A Tale of Two Stores

In the end, as counterintuitive as it may seem, embracing retail has the potential to serve as a positive catalyst for both companies. There are pitfalls to the retail approach for both, but with careful management they should be easily avoided.

The article Retail Could Boost These Two Stocks originally appeared on Fool.com and is written by Chris Moore.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Page 2 of 2