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How Google Plans to Overcome What Could Be Its Greatest Risk

By Andrew Tonner – Mar 16, 2014 at 3:15PM

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Tech giant Google faces a key risk with an equally impressive solution.

As far as tech companies go, search giant Google (GOOGL 2.81%) is without question one of the most powerful and technologically sophisticated players in the world.

However, even a company as seemingly limitless as Google faces the occasional game-changing risk that it must overcome. And interestingly enough, it appears Google might have helped to actually create one such risk for itself. But in typical Google fashion, it appears to also have found a solution to this serious threat by leaning on its own technological chops.

Solving its own problems
Financially speaking, Google search advertising remains the lifeblood for Google's entire sprawling technology empire. 

However, as Google's Android helps fuel the mobile revolution and people's computing shifts to smartphones and tablets, the app ecosystem Google helped create is now also posing a material threat to Google's own search business. 

How's that?

As people increasingly use smartphones, their information consumption has shifted decidedly away from Internet browsers and toward apps. The key implication is that users now could have a decreased use case for Google's own search engine and the advertisements it serves. However, as tech and telecom analyst Andrew Tonner discusses in the following video, Google is fast at work in creating its own impressive solution to this rising problem.

Andrew Tonner has no position in any stocks mentioned. The Motley Fool recommends Amazon.com, Facebook, Google, and Twitter and owns shares of Amazon.com, Facebook, and Google. We Fools don't 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.

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