Google Inc (GOOG): The Tech Giant Is Not Impervious To This

On the Homefront

One surprise on that chart is Yahoo! Inc. (NASDAQ:YHOO). If anything should convince investors that the popularity and profitability of search companies is fleeting, it’s that Yahoo! Inc. (NASDAQ:YHOO) – even through its trials and tribulations – has been close to Google Inc (NASDAQ:GOOG) in quarterly profitability. Heck, Yahoo! Inc. (NASDAQ:YHOO) even passed Google recently.

I find that to be a strong indicator that CEO Marissa Mayer has work to do, but less than a lot of analysts expect. I’m not alone. Shares have grown 58.2% over the last 12 months and the P/E is still a low 7.2. The predicted growth isn’t yet factored into Yahoo!’s share price.

In the End

The important lesson I want to impart here is that – for the everyday investor – tech stocks are more than English-speaking companies. There are plenty of firms out there in the world – the increasingly global world – that are willing to compete with the companies you hear about every day on the news. They don’t get the ink right now, but they will, and when they do the current crop of big boys had better watch out. Remember, while Google Inc (NASDAQ:GOOG) wants entry into the Chinese market, these companies want entry into the American market.

The article Google Isn’t Impervious to Competition originally appeared on Fool.com and is written by Nate Wooley.

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