Facebook (FB) Could Become A Real Problem For Google (GOOG)

Google and Facebook Stock NewsFacebook (FB) and Google (GOOG) are two of the largest household names online today. If you want to know something…”Google (GOOG) It!” Want to get in touch with an old friend? Find them on Facebook (FB)! These are terms that the average American uses every day. While Google (GOOG) is a much larger company that’s definitely a beast in its own respect, Facebook (FB) isn’t far behind; and I think that they’re going to start causing some big problems for Google (GOOG). Today, we’ll talk about Google’s dominance of the online ad space, Facebook’s growth in the industry, the feud that’s been brewing between the companies for a while now, and my overall opinion as to which company is the better investment.

Google (GOOG) Currently Dominates Online Ads

Google (GOOG) is a very dominant company. When it comes to the online ad space, the company takes around 30% of the cake. While Google Search accounts for a large portion of that, it’s important to remember that search isn’t the only reason that the company takes such a large piece of the pie. The bottom line is that….

Google (GOOG) Is Everywhere!

  • Search – Everyone knows about Google (GOOG) Search. Even in my early adult years, one of my favorite terms was “Google it…” The company is the dominant party in search and that doesn’t seem to be changing any time soon. According to NetMarketShare.com, Google (GOOG) takes more than 60% of the worlds online search market share!
  • Social – OK, so Google’s not necessarily a social media giant, but we can’t forget about Google+. While it’s nowhere near the size of Facebook (FB), Twitter (TWTR), or LinkedIn (LNKD), it is generating at least some interest.
  • Video – Have you heard of YouTube? If not, you probably live under a rock! The online video streaming service is the largest of its kind and has become a household name in and of itself. Guess what….Google (GOOG) owns it! Cha Ching!
  • Ad Aggregation – Look at the ad on the top of this article, the right, and the bottom. Seems pretty familiar right? That’s because CNAFinance.com is not the only website that uses this ad format. The ads are part of a program called Google (GOOG) Adsense and they give website owners a way to monetize content; they’re also great at lining Google’s hypothetical pockets.
  • More – Google (GOOG) has tons of other products that bring in ad revenue; but that’s for another article in itself.

Facebook (FB) Is No Longer The Goliath Google (GOOG)’s David!

While Google (GOOG) is a massive company, we can’t discount the sheer size, strength, and more importantly eagerness to grow that we see from Facebook (FB). The company’s IPO price was $38. In a short period of time the value of Facebook (FB) has skyrocketed to $79.31, and it’s expected to continue in the upward direction. Here are a few things you should know about Facebook (FB).

Facebook (FB) & Google (GOOG) Just Don’t Get Along

If you watch the news about the two companies, it’s pretty clear that they don’t generally get along. One of the biggest public feuds between Google (GOOG) and Facebook (FB) had to do with Google (GOOG) attempting to use Facebook (FB) data for their search results without allowing Facebook (FB) to use Gmail data. As a matter of fact, to this day, Twitter (TWTR), LinkedIn (LNKD), and other social media tends to show up in Google (GOOG) search far more than Facebook (FB) as a result of the arguments over data use.

What Stock Is A Better Investment?

In this case, while Facebook (FB)’s user base is smaller, I think they may have the upper hand. The reality is that everyone uses Facebook (FB); and while there are other options, none are nearly as popular. The social atmosphere makes it hard for users to leave Facebook (FB). On the other hand, users can easily use Bing without upsetting their friends if they get tired of Google (GOOG). Therefore, as competition comes into Facebook’s space, they don’t have to worry much about it. However, competition in Google’s space could start cutting into their market share; as Bing already has. So in that respect, I think Facebook (FB) may have the upper hand in the long term end of the battle.

What Do You Think?

Which would you rather invest in, Facebook (FB) or Google (GOOG)? Why? Let me know in the comments below!

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5 thoughts on “Facebook (FB) Could Become A Real Problem For Google (GOOG)”

  1. Definitely FB. Google has its place for searching and research but the stock is over priced and long term will have major competitions with other search engines. FB on the other hand seems to blow away any competition that comes near them and the stock price is within reach for more people to invest.

  2. Hi Josh! I didn’t realize that YouTube is owned by Google. With as much money as these two giants have, it only makes sense that they want to expand into new areas. Although Facebook may have the advantage now in increasing their ad revenue, I would not count Google out as an investment. They will find new niches to invest in and have the deep pockets to keep trying new venues. Both would be good investments in my non-professional opinion. Thanks for an intriguing post!

  3. Interesting article! Both companies are really intriguing in my opinion. While Facebook looks to be gaining some traction with advertising, online retailers, and marketing companies, it is still primarily a one trick pony. Everything Facebook does goes towards increasing the value of their social media website. They are through and through a social media company.

    To call Google a search engine website today, would be a vast understatement. That is where they started, but their reach extends far beyond that. They have been diving into robotics, cars, phones, computers, satellites, and the list goes on. While some major segments of Google’s business crosses over with Facebook, Google is far more diversified and has positioned themselves to profit from a variety of industries as they accelerate into the future. If any one of these industries takes off at a fraction of how Internet use and search engines did in the 90s, Google stands to see some huge benefits.

  4. Two words….My Space…Social networks can collapse overnight. As long as Google offers the best internet search, they won’t be going anywhere. Of course, any company can fail if they don’t stay at the forefront of an industry – but Facebook proved that the most popular social network can be destroyed in a matter of months.

  5. Sven- Instagram, what’s app, Oculos- f’in China. These are the vehicles that will make FB “far more diversified” in the near term and long term future. I give GOOG a ton of credit for what they do and kick myself for selling when I did, but FB….. I think the best is yet to come. You can say that years ago GOOG was just a ” search company” – look at what they are now. GOOG got everyone on to the Internet. FB just connects them. (With more to come!) Tip of the iceberg stuff.


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