Should You Buy Google Inc (GOOG) Now?

On the other hand, Facebook has launched its search engine. Facebook has one of the biggest databases available, which it can use to create an extremely effective search engine. However, as I mentioned above, Facebook has been unable to effectively monetize its user base. As a result, the company is lagging behind its competitors. Facebook’s search engine could prove to be a massive success if the company is able to implement the idea properly. As a result, Facebook may become the biggest competitor for Google in the Search engine segment.

Apple, on the other hand, has had a tough start to the new year. The stock lost substantial value after the earnings report for the fourth quarter. However, it should be kept in mind that Apple is the biggest competitor for Android. The company has an extremely loyal fan base, which will flock in numbers as the company launches its next product. Apple stock has started to gain its lost value, and over the past week, it has recovered substantially. Google has expanded itself massively, and the company competes with a number of companies in different segments. There is intense competition in the market and a lot of pressure to innovate. All of the participants will have to focus on innovation in order to consolidate their market positions.

Summary:

In the current dynamic and globalized world, despite the economic slowdown, consumers are increasingly spending on technologically advanced devices and smartphones. With Google one step ahead on the innovation trajectory, I would recommend a Buy stance on Google with share price expected to exceed $800 per share in the latter half of the calendar year.  The stock is currently trading with an average P/E ratio of 16.43 in comparison to 9.03 for the industry, and an average PEG ratio of 1.19. In addition, I would expect the EPS to cross $40 by December 2013, up from $10.42 in December 2012.

The article Should You Buy Google Now? originally appeared on Fool.com and is written by Ishtiaq Ahmed.

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