Google's (NASDAQ:GOOGL)(NASDAQ:GOOG) ecosystem offers an impenetrable advantage that should allow the company to enjoy several more years of heady growth, Fool contributor Tim Beyers says in the following video.
Venture capitalist Fred Wilson captured the spirit of the idea best in a recent blog post:
The big gains from technology in the coming years will come from things like machine learning and collective intelligence ... I don't think any one company has a lock on all of the device level innovation and I worry that one company, Google, is developing a very large and sustainable advantage in machine learning and collective intelligence that will be hard for anyone to compete with.
Tim agrees, noting that Google is able to collect data so easily as a consequence of supplying an ecosystem of products and services that perform best as part of a greater whole. Think of Maps. Anyone can look up a location on a PC, pin it, and then open Maps on an iPhone and ask for directions to the pinned location. The single login design of Google+ ensures interoperability.
We've seen the benefits of its approach. Google improved its revenue from apps and other digital content by 48% year over year in the first quarter, to more than $1.5 billion. Given the reach and strength of its ecosystem, there's every reason to believe we'll see continued growth in this area in the quarters and years to come.
Now it's your turn to weigh in. What's your take on Google's advantages or lack thereof? Please watch the video to get the full story and then leave a comment to let us know your take, including whether you would buy, sell, or short Google stock at current prices.
The next Google is out there -- and this may be it
Every investor wants to get in on revolutionary ideas before they hit it big. We want to own the next Google before it becomes the next Google. The problem is, most investors don't understand the key to investing in hyper-growth markets. The real trick is to find a small-cap "pure play" and then watch as it grows in EXPLOSIVE lockstep with its industry. Our expert team of equity analysts believe they've found just that sort of stock, still in the early stages of profiting from a $14.4 TRILLION industry. Click here to get the full story in this eye-opening report.
Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team and the Motley Fool Supernova Odyssey I mission. He owned shares of Google (A and C class) at the time of publication. Check out Tim's web home and portfolio holdings or connect with him on Google+, Tumblr, or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.
The Motley Fool recommends and owns shares of Google (A and C class). 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.