Google Inc (GOOG), Pandora Media Inc (P): Investing in Your Choice of Music

With over $700 million in free cash flow, Sirius has to take up this opportunity and maintain its programming quality and expand more to mobile platforms and car manufacturers. I would rather sit back and enjoy the music till the company continues to innovate and reward investors.

The success of free

Making over $43 billion in 2012, Google has a much higher level of ad revenue, which shows that if a website is popular and if it continues to innovate, it will certainly make huge profits. Google websites account for over 67% of the company’s income, which highlights the fact that Google keeps much of its revenue in-house, instead of forming partnerships or depending on other companies.

Google continues to dominate as its thirst for innovation never ends. Google has certainly shown no limits in its progress. With a record of over 5 billion searches per day and a cash flow of over $13 billion in 2012, its shareholders can anticipate a dividend.

A little thought

Paid online search is a never a good idea as one never wants to pay to search. Similarly, as Sirius XM Radio speaks for itself, even though paid music subscriptions offer great quality service, its sustainability is a question mark. To think about success, websites need to consider the risks and need to innovate, as only innovation fuels success.

Ashley Sales has no position in any stocks mentioned. The Motley Fool recommends Google and Pandora Media. The Motley Fool owns shares of Google.

The article Investing in Your Choice of Music originally appeared on Fool.com and is written by Ashley Sales.

Ashley 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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