The Search Ends Here: Yahoo! Inc. (YHOO), Facebook Inc (FB), Google Inc (GOOG)

Google’s Android operating system for mobiles and tablets controls about 70% of the mobile market. Most people using a search engine on a phone use Google as a default search engine, and with the growth of smartphone market Google can dominate this space for a long time.

The company has not been able to make anything good out of the Motorola acquisition, yet but its plans to introduce its own phone in the market may make the acquisition fruitful. Moreover, the Nexus has the potential to be a winner in the tablet space and with the introduction of Google phones in the market would provide a better integration among the devices.

The Cash/Debt position of the company is more than 6 times. Even though the stocks seems expensive at a P/E of 24, there is no denying that the company has the potential to generate cash and grow further from here on. This stock is more of a growth stock than a value stock.

In the face of competition

Since Facebook’s disappointing IPO, nobody really looks forward at this stock to outperform. But Facebook’s advertising revenue is consistently on the up and is expected to get better from here. Facebook has also introduced a new technology called the conversion tracking which allows advertisers to track the point of sale.  This could help advertisers to develop ads more specific to user requirements. Given the huge database that Facebook has this new technology can really click with the advertisers and investors can see some increase in the company’s advertisement revenue.

The article The Search Ends Here originally appeared on Fool.com and is written by Nitesh santhalia.

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