In its last earnings report, Google reported a 22% increase in revenue to nearly $10 billion. The company brings in much of its earnings from cost-per-click revenue, and paid clicks rose 20% during the last quarter.
Because of the success of Google’s Android operating system, Microsoft’s loss is Google’s gain. The company provides its O/S to smartphone manufacturers at no charge to encourage them to include it. Today, the company’s stock is rising as many of its rivals are seeing falling prices.
But with the stock rising more than 30% this year to a price that tops $900 a share, many investors simply find the stock too expensive. For investors looking for a bargain, Yahoo! may be a better buy. But for investors looking for a winner, Google is an even better choice than Microsoft, even with Bing’s recent usage increases.
Still, none of Yahoo! Inc. (NASDAQ:YHOO)’s acquisitions are as game-changing as, say, Facebook purchasing Instagram or Twitter’s notable success with newly-purchased Vine. Both purchases are proof that it’s one thing to purchase a company, but it’s another to let that purchase make a big difference in your stock’s value. Unless Yahoo! can find the next Vine or Instagram, chances are the company will only do more of what it’s been doing since the days of dial-up and, in the competitive social media world of 2013, that likely won’t be enough.
The article Yahoo!’s Buying Spree May Not Be Enough to Save the Day originally appeared on Fool.com and is written by Stephanie Faris.
Stephanie Faris has no position in any stocks mentioned. The Motley Fool recommends Google. The Motley Fool owns shares of Google and Microsoft. Stephanie 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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