Will These Acquisitions Help Google Compete with Amazon?

Google has a massive pile of cash and is willing to spend to beef up Google Shopping. Will predictive marketing help it compete with Amazon?

May 7, 2014 at 11:05AM

Google (NASDAQ:GOOG) (NASDAQ:GOOGL) is making acquisitions to build up Google Shopping, its retail portal, in an apparent effort to turn up the heat on Amazon.com (NASDAQ:AMZN). The search giant acquired two London-based firms this year, Rangespan and DeepMind. Both could improve Google Shopping's ability to put products you want front and center, creating a more appealing list of products in an attempt to get ahead of buying waves. This could increase its sales volume while streamlining distribution for companies on the Google Shopping platform.

Rangespan can help catch buying trends in real time
Rangespan, acquired last week and founded in 2011, works behind the scenes of a shopping portal, analyzing data and real-time sales analytics. The analysis helps online retailers assess the market and predict which products and categories might be starting to trend. By staying ahead of the curve, retailers could offer products just as they're beginning to get popular, instead of trying to catch a hot sales trend after the peak.

According to TechCrunch, Rangespan consists of just four people and was founded by Matt Henderson and Ryan Regan, both former high-ranking Amazon employees. Henderson worked as a director of merchant services in the U.K., while Regan served for eight years in different roles, including managing director. Regan went on to say that "There are a lot of parallels between what we are doing and what Google is doing, and we are excited to work together."

DeepMind can help Google predict future trends
In addition to Rangespan, Google acquired DeepMind, a British company focusing on artificial intelligence. DeepMind uses machine learning to build algorithms for use in simulations, e-commerce, and games. But beyond its splash page, there is little detail available on the company.

Will this help Google Shopping compete more effectively?
Like Amazon, Google Shopping is a platform for online merchants to connect with customers, but Google appears to be making a deeper effort to use real-time and predictive analysis for product placement and advertising. By using technology from Rangespan, Google could be able to get current popular deals in front of potential customers while using Deepmind to anticipate follow-on opportunities or to proactively offer more appealing daily deals or advertising.

Is the day of the Internet start-up behind us?
The world of online services is quickly drawing tighter, as Amazon, Google and Apple more aggressively compete with each other in the areas of commerce, subscription music services, gaming, online video and eventually electronic payments. It seems that if you can go to the web for fulfillment, one or all of these companies is offering a solution to make it easier, quicker, or cheaper.

As large companies like Google are able to leverage the cash flow from other businesses like paid search -- or in the case of Apple, smartphones, tablets, and notebooks -- is the day of the start-up Internet company behind us? Will companies like Pandora and Groupon be able to compete? Or will they be forced to become a part of a larger entity?

Will this stock be your next multi-bagger?
Give me five minutes and I'll show how you could own the best stock for 2014. Every year, The Motley Fool's chief investment officer hand-picks 1 stock with outstanding potential. But it's not just any run-of-the-mill company. It's a stock perfectly positioned to cash in on one of the upcoming year's most lucrative trends. Last year his pick skyrocketed 134%. And previous top picks have gained upwards of 908%, 1,252% and 1,303% over the subsequent years! Believe me, you don't want to miss what could be his biggest winner yet! Just click here to download your free copy of "The Motley Fool's Top Stock for 2014" today.

David Eller has no position in any stocks mentioned. The Motley Fool recommends Amazon.com and Google (C shares). The Motley Fool owns shares of Amazon.com and Google (C shares). Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Money to your ears - A great FREE investing resource for you

The best way to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as “binge-worthy finance.”

Feb 1, 2016 at 5:03PM

Whether we're in the midst of earnings season or riding out the market's lulls, you want to know the best strategies for your money.

And you'll want to go beyond the hype of screaming TV personalities, fear-mongering ads, and "analysis" from people who might have your email address ... but no track record of success.

In short, you want a voice of reason you can count on.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich," rated The Motley Fool as the #1 place online to get smarter about investing.

And one of the easiest, most enjoyable, most valuable ways to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as "binge-worthy finance."

Whether you make it part of your daily commute or you save up and listen to a handful of episodes for your 50-mile bike rides or long soaks in a bubble bath (or both!), the podcasts make sense of your money.

And unlike so many who want to make the subjects of personal finance and investing complicated and scary, our podcasts are clear, insightful, and (yes, it's true) fun.

Our free suite of podcasts

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. The show is also heard weekly on dozens of radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable. Rule Breaker Investing and Answers are timeless, so it's worth going back to and listening from the very start; the other three are focused more on today's events, so listen to the most recent first.

All are available for free at www.fool.com/podcasts.

If you're looking for a friendly voice ... with great advice on how to make the most of your money ... from a business with a lengthy track record of success ... in clear, compelling language ... I encourage you to give a listen to our free podcasts.

Head to www.fool.com/podcasts, give them a spin, and you can subscribe there (at iTunes, Stitcher, or our other partners) if you want to receive them regularly.

It's money to your ears.

 


Compare Brokers