Google dazzled investors in 2006, in large part due to its ability to monetize the internet. What companies will excite investors by this time next year? We asked three of the nation’s leading web watchers about tech trends for '07.
Jordan Rohan, the Managing Director at RBC Capital Markets says he likes Google for ’07, because they dominate the international market. (In Europe Google’s market share is around 70%).
He also likes the partnerships that the internet company is pursing. “Google is helping to reshape traditional media. Google is approaching the makers of content, whether it’s TV or radio or newspapers with a checkbook open.”
David Garrity is the Director of Research at Dinosaur Securities in New York. He expects to see more internet advertising and more consumers accessing the internet via wireless devices in ‘07. And, he reminded, “Don’t overlook Yahoo!and it’s Project Panama." (Project Panama is a new and sophisticated system which will determine the order in which Yahoo! displays advertisements)
Rob Owens is a Senior Analyst at Pacific Crest Securities. He anticipates that on-line security will present investment opportunities in ’07. He said, “You’re going to see the emergence of extended validation certificates. They will be issued by companies such as VeriSign and Entrust. (These certificates) will help raise consumer confidence."
A CNBC viewer asked the panel (via e-mail) about Apple’supcoming projects and whether they will be a springboard for profits.
David Garrity said “Apple’s smart phone will be very significant. Apple is making downloadable video available. It will be interesting to see how content providers capitalize off the I-Phone.”
Jordan Rohan added, “Remember that Google’s CEO, Eric Schmidt joined the board of Apple in 2006. I expect the companies to (join forces and) recognize their common foe is Microsoft .”
Analyst Disclosure: ENTU is a banking client of Rob Owen's firm Pacific Crest.
Analyst Disclosure: Neither David Garrity, his family nor his firm owns shares of GOOG, YHOO or MSFT.
Analyst Disclosure: Neither Jordan Rohan, his family nor his firm owns shares of GOOG, YHOO or MSFT.