Google Stock News: Increased Competition And Growing Expenditures

Google Inc. was a top stock to short based on predictive algorithm recommended to I Know First subscribers on October 10th for the 3-month time horizon. Google had a signal of -161.62 and a predictability of 0.47. In accordance with the algorithm, Google reported short-term capital losses of 11.54%.

Google was part of the stock forecast that can be found in the “Tech Stocks” Package.

The full Top 10 Tech Stocks forecast includes a daily prediction for a total of 20 stocks with bullish and bearish signals:

  • Top ten stocks picks to long
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google stock news

Google Inc. (Goog) had a poor 2014, with its stock falling 5% for the year, its worst since 2008. Since the beginning of the year, the stock has already fallen more than 8%. Investors have concerns about Google for a couple of reasons. One is concerning increased competition, especially from Facebook. These worries increased when Google released its most recent earnings report in October.

The social media site has been successful in stealing some market share from Google, which had its market share slide slightly while Facebook’s market share jumped from 6% to 8%. Facebook is also gaining ground in mobile, with its mobile ad market share rising 1.5% in a year to 18.5%. In that time, Google’s mobile ad market share fell from 45% to 40.5%.

There are also concerns that Facebook will take away online video revenue from Google’s YouTube, as Facebook has aggressively boosted its video efforts. Meanwhile, the resurgence of Apple is also negative for Google, whose Android mobile operating system is in direct competition with Apple’s iOS. Android devices have been losing market share to the iPhone 6 and 6 Plus.

Besides the increased competition from rival companies, investors are also concerned about the amount of money the company is spending to move into new markets. Google purchases connected devices maker Nest for $3.2 billion. It also acquired drone maker Titan Aerospace and satellite company Skybox Imaging. These might be smart decisions for the future, but they hurt the company’s income and have investors concerned, causing the stock to decrease over the last few months.