Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



More Clouds for Google

If you're at all like me, Twitter is your digital heroin. Google (Nasdaq: GOOG  ) wants to change that; its blunt instrument is a Finnish start-up called Jaiku, acquired last October for an undisclosed sum. On Sunday, VentureBeat reported that DoubleGoo will hoist Jaiku into the cloud via its App Engine service.

Should you care? Not according to Foolish colleague Seth Jayson, who skewered the deal after Google made it:

We're back to dot-com mania, where big companies are chasing new concepts for no reason other than to get a foot in the door and keep others out. Doesn't make a bit of difference if that door leads to a good place or not. After all, there's no indication YouTube is destined to be a profit earner. Nor any of the online "office suite" that Google has cobbled together.

All true, and yet entirely off-point. Google no more needs to charge for its properties than do CBS (NYSE: CBS  ) , Disney (NYSE: DIS  ) , or any of the other TV titans. What Google needs is your clicks, which it gets via search and land grabs like Gootube and Jaiku. These are the gateways to more searches.

What's more, we know from Google's AdSense data that it can transform digital scrub brush into a cash factory. Microsoft (Nasdaq: MSFT  ) and Yahoo! (Nasdaq: YHOO  ) have yet to figure out how to be better at this game. So long as that's true, we can expect that Google will continue to:

  1. Grab good digital real estate on the cheap.
  2. Put ads on that real estate.
  3. Cultivate what works (i.e., Google News).
  4. Replace what doesn't (i.e., Google Video).

So yeah, Jaiku is a narcissistic and not-terribly useful service. You could argue the same about Twitter. (Though, as a writer, it does help me to get more of my stuff read.) Google doesn't care. Nor should it. Jaiku is just more real estate in a digital empire that's beginning to make Donald Trump look small.

Get your clicks with related Foolishness:

Fool contributor Tim Beyers had positions in Google's shares and 2010 LEAPs at the time of publication. He hunts for tech's best as a contributor to Motley Fool Rule Breakers, which counts Google as a core holding.

Disney is a Stock Advisor selection. Microsoft is an Inside Value pick. Try either of these market-beating services free for 30 days. There's no obligation to subscribe.

The Motley Fool's disclosure policy wonders when Trump will drop the comb-over.

Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 713764, ~/Articles/ArticleHandler.aspx, 10/28/2016 5:43:25 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,161.19 -8.49 -0.05%
S&P 500 2,126.41 -6.63 -0.31%
NASD 5,190.10 -25.87 -0.50%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/28/2016 4:00 PM
GOOGL $819.56 Up +2.21 +0.27%
Alphabet (A shares… CAPS Rating: *****
CBS $56.54 Up +0.13 +0.23%
CBS CAPS Rating: ***
DIS $93.85 Down -0.17 -0.18%
Walt Disney CAPS Rating: *****
MSFT $59.87 Down -0.23 -0.38%
Microsoft CAPS Rating: ****
YHOO $41.78 Down -0.09 -0.21%
Yahoo CAPS Rating: **