Why Google Inc (GOOG) Isn’t the Next Apple Inc. (AAPL) or Microsoft Corporation (MSFT)

Leader of Digital Advertising

In the advertisement industry, online and mobile advertising is the fastest growing segment; of which Google is the largest and fastest growing company. Google is in a prime position to continue taking advantage of this fast growing market. Google accounted for over half of global revenue from mobile advertising last year. Google Inc (NASDAQ:GOOG) is expected to maintain this lead in 2013 when the mobile advertising market is expected to double to over $15 billion. This lead remains several multiples ahead of closest competitor Facebook. In online advertising Google has a 31% market share with $32.73 billion in 2012, and is expected to grow this to 33% with $38.83 billion in 2013.

The Google ecosystem feeds off of itself by continuously coming out with popular free products for users; while collecting valuable data for advertisers. Advertisers who in turn pay to advertise to Google users. Google’s ability to continuously dominate the online advertising market and create industry leading products is a testament to the strength of this business model.

My personal investing philosophy is to find good companies that are undervalued, wait for a comfortable entry point, and then hold until I think they reach their potential. With Google Inc (NASDAQ:GOOG) trading a few percentage points below its all time high I will be waiting for a lower point to buy in. Google is able to beat competitors at their own game; meanwhile those competitors struggle to compete on Google’s home front. Until this changes Google’s growing lead in online advertising, its superior products and relatively low forward P/E ratio of 16 make it an excellent buy.

The article Why Google Isn’t the Next Apple or Microsoft originally appeared on Fool.com and is written by Xuebing Wang.

Xuebing Wang has no position in any stocks mentioned. The Motley Fool recommends Apple and Google. The Motley Fool owns shares of Apple, Google, and Microsoft. Xuebing is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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