The Best Reason to Buy Google Now

Could a better data aggregator, one that indexes community intelligence as easily it does the Web, kill Google (Nasdaq: GOOG  ) ? Some of you think so.

I'm not so sure. Even if DoubleGoo at times resembles a Greek tragedy waiting to happen, it's much more like the best company I've ever seen. How else do you explain that, just a few months after launch, would-be Google killer Cuil (pronounced "cool") is struggling to survive?

Blogger TechCrunch's recent study of Cuil's traffic patterns found that the site has flatlined since launch. Web tracker Alexa ranks Cuil 9,505. Google is second. The Motley Fool is ranked 1,313. Cuil, in other words, isn't cool at all.

You aren't really surprised, are you? You've seen Google's share of October 2008 searches:

Search Engine

Market Share

YOY Gain/(Loss)

Google

61.2%

8.1%

Yahoo!

16.9%

(12.0%)

MSN/Windows Live

11.4%

(19.0%)

AOL

4.3%

14.5%

Ask.com

2.3%

(22.9%)

Source: Nielsen Online MegaView Search.

Google dominates search like Microsoft (Nasdaq: MSFT  ) dominates PC operating systems. That's a minor problem for Time Warner (NYSE: TWX  ) and IAC (Nasdaq: IACI  ) , operators of AOL and Ask.com, since they're diversified. Yahoo! (Nasdaq: YHOO  ) isn't. It's only a matter of time before a suitor pays enough to take the company off life support. Cuil, which lost its vice president of products in September, could be facing the same.

Cuil is dead. Long live Google.

Why not put this argument to rest for good, Larry and Sergey? Once you've killed Cuil, cut off Kosmix.com at the knees by acquiring the seemingly recession-proof Twitter and then embracing and extending its social search engine into your own. I guarantee it'll cost less than the $14.4 billion you've in the bank.

Get your clicks with related Foolishness:

Google is a Rule Breakers recommendation. Microsoft is an Inside Value pick. Try either of these Foolish services free for 30 days. There's no obligation to subscribe.

Fool contributor Tim Beyers is a member of the Rule Breakers team and had stock and options positions in Google at the time of publication. Check out his portfolio holdings and Foolish writings, or connect with him on Twitter as @milehighfool. The Motley Fool is also on Twitter as @TheMotleyFool. Its disclosure policy is searching for the best grapes money can buy for its start-up vineyard.


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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.

  • Report this Comment On December 29, 2008, at 5:44 PM, dividendgrowth wrote:

    To make a dent in search business, one needs a global network of massive data centers.

    It's not about one web page, it's about trillions of web pages.

    I doubt start ups can even afford the utility bills these days.

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