The eyes of financial experts are set on Google Inc (NASDAQ:GOOGL), whose shares declined nearly five percent in the past year. The search engine company is facing competition at multiple fronts and it would be interesting to see company’s approach to lure its investors.
According to some of the experts, a major concern is the increasing advertisement revenue of social networking platforms such as Facebook Inc (NASDAQ:FB) against Google. The social networking site has received success with its video advertising feature and mobile advertisements. In addition to it, more than 3 million videos were posted on Facebook in September 2014 alone and it is quickly gaining popularity among small business owners against Google Inc (NASDAQ:GOOGL)’s services, YouTube.
However, some experts are opined that both of these companies are increasing their individual shares of online advertising instead of cutting each other’s revenue streams. Mark Mahaney, RBC Capital Markets, said,
“We don’t see any evidence that Facebook is stealing away ad dollars from Google. We think they are both taking dollars from a larger ad pie.”
At the same time, experts are concerned about the increasing investments of Google Inc (NASDAQ:GOOGL) in new markets and these investments might jump 50% reaching $11 billion in the current fiscal. Some experts are in favor of the spending stating that if the company is able to get even one or two of these investments right, it will enjoy sustainable growth for the years to come.
Earlier last year, Google gave a hint of its diversifying services portfolio by releasing ‘Google For Work,’ which is likely to compete against the enterprise solutions offered by current dominant player, Microsoft Corporation (NASDAQ:MSFT). At the same time, Google Inc (NASDAQ:GOOGL) is ready to collaborate with tech companies to increase its cloud share. The company announced support for Microsoft’s enterprise solutions on its cloud platform.
This article has been written by Prakash Pandey.