New York, NY (PRWEB) August 26, 2012
In a recent Investment Contrarians article, editor Sasha Cekerevac notes that Google sets itself apart from other technology stocks through innovation as a key investment strategy. However, Cekerevac reports that Google’s recent expansion to include the retail sector means Google must now adapt its methods to be on par with other retail technology stocks.
Google’s recent announcement that it will be selling tablets directly to consumers, means Google has to catch up to leader Apple, which currently holds approximately 73% of the market share, says Cekerevac.
In addition to Apple, the success of Amazon.com’s tablet, the “Kindle Fire,” is a problem for Google, as it runs off of Google’s “Android” operating system, Cekerevac observes.
As the Investment Contrarians editor explains, Android controls and keeps track of all searches, mining this billion-dollar data for marketing purposes. Once another company builds its system on top of Android, Google loses access to this information. Therefore, Amazon.com, not Google, collects and stores the data from the Kindle Fire, he reasons.
Google reported over 86% of Android users are using old software; either the devices can’t get upgraded to the new software, or consumers aren’t buying the newest devices, cites Cekerevac: “Either way, it’s not a good sign for Google.”
Google needs to pay careful attention to the retail sector and formulate an investment strategy that makes sense for the long term, Cekerevac argues.
“With the stock trading at a forward price-to-earnings ratio of just over 12, the valuation makes a compelling case,” Cekerevac concludes; however, he suggests investors wait to see the reaction in the retail sector to these products and services before buying.
To see the full article and to get a real contrarian perspective on investing and the economy, visit Investment Contrarians at http://www.investmentcontrarians.com.
Investment Contrarians is a daily financial e-letter dedicated to helping investors make money by going against the “herd mentality.”
The editors of Investment Contrarians believe the stock market and the economy have been propped up since 2009 by artificially low interest rates, never-ending government borrowing and an unprecedented expansion of our money supply. The “official” unemployment numbers do not reflect people who have given up looking for work and are thus skewed. They believe the “official” inflation numbers are also not reflective of today’s reality of rising prices.
After a 25- to 30-year down cycle in interest rates, the Investment Contrarians editors expect rapid inflation caused by huge government debt and money printing will eventually start us on a new cycle of rising interest rates.
Investment Contrarians provides unbiased research. They are independent analysts who love to research and comment on the economy and investing. The e-newsletter’s parent company, Lombardi Publishing Corporation, has been in business since 1986. Combined, their economists and analysts have over 100 years of investment experience.
Find out where Investment Contrarians editors see the risks and opportunities for investors in 2012 at http://www.investmentcontrarians.com.
George Leong, B. Comm., one of the lead editorial contributors at Investment Contrarians, has just released, “A Problem 23 Times Bigger Than Greece,” a breakthrough video where George details the risk of an economy set to implode that is 23 times bigger than Greece’s economy! To see the video, visit http://www.investmentcontrarians.com/press.