Groupon Inc (GRPN), Google Inc (GOOG), Amazon.com, Inc. (AMZN): Searching For E-tail Profits? This Company Can Help

Of course, it’s still very early in the game in mobile search and advertising, and Google Inc (NASDAQ:GOOG) may figure out ways to make this line of search more profitable as more web users make the shift to handheld computers. It is a very innovative company that has adapted to a changing Internet game game as well as any other company in the space. Indeed, along with companies like Apple and Amazon, Google has helped define how people use the Internet.

But for now, it remains a concern that investors should not ignore.

And then there’s Amazon … again

An argument can certainly be made that Amazon.com, Inc. (NASDAQ:AMZN)’s march toward becoming a one-stop shop for all things you can buy on the web is stealing away some of Google’s e-tail search traffic. Many would-be shoppers who had previously started product search with Google now go straight to Amazon and use the search bar there. Its impact here can’t be dismissed.

Last year, comScore reported that Amazon.com, Inc. (NASDAQ:AMZN)’s product search queries were up 73%, while Google Inc (NASDAQ:GOOG)‘s remained relatively flat. This is yet another reason why Amazon.com, Inc. (NASDAQ:AMZN) looks poised for domination across the e-tail landscape, and why it is duly attracting the attention of many growth investors.

I took a more in-depth look at Amazon in my first post about e-tail, so I won’t get into too many details here. Although Amazon.com, Inc. (NASDAQ:AMZN) is gobbling up market share with every passing quarter, it’s far from a slam dunk. The company is experiencing increasing costs and undertaking a major build-out of warehouses, cutting into profits and establishing some ongoing expenses that could create margin pressure for years to come.

Amazon also carries a good amount of risk, as its stock price is untethered to its financial underpinnings. So while Amazon.com, Inc. (NASDAQ:AMZN) carries great potential, investors must have a healthy appetite for risk.

The bottom line

There are a number of ways to play the e-tail megatrend, and some of the best investments may be hiding right under your nose. Google is one of those companies. It has staked out a dominant position in search and has turned big profits by connecting potential buyers with the sellers of goods online. If you’re searching for e-tail profits, Google Inc (NASDAQ:GOOG) is at least worth a closer look.

The article Searching For E-tail Profits? This Company Can Help originally appeared on Fool.com and is written by John-Erik Koslosky.

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