Tech is a large part of the U.S. economy and it’s exciting to see changes going on in the hardware and Internet side, said Roger McNamee, co-founder of Elevation Partners.
“Microsoft is a 'buy'… [I’d be] 'long' Apple and 'short' Google,” McNamee told CNBC.
"There’s a titanic clash for the control of the Internet—this is between the world wide web on the one hand and Apple’s app model on the other," he explained.
"So if you think of Google as the leader of the world-wide web group, their problem is that the underlying software for the web — HTML — hasn’t changed for a decade."
"And as a result, we haven’t been able to have a bull market—there hasn’t been enough opportunities for innovation."
McNamee explained that Apple is currently “killing” the world-wide web with more consumers rapidly adopting iPads and iPhones. He also predicted that Apple will sell nearly 100 million units this year.
“Google is still a great company and still growing, but it’s losing influence,” explained McNamee. “People have shifted their search behavior and if you look at index search—which is what Google and Microsoft do—that used to be 90 percent of searches five years ago…but consumers [have been] switching to Wikipedia, Facebook, Twitter, Yelp and a lot of specific search engines and those in aggregate are more than half the market.”
“Content on the web is going to be wildly more competitive over the next 20 years,” he noted.
Meanwhile, McNamee said Hewlett-Packard is a “very strong player” in the consumer electronics field. However, he is not a fan of the Android market.
“Google does not protect the hardware guys and there’s no anti-virus protection out there,” he said.
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Disclosures:
McNamee does not own shares of AAPL, GOOG, ADBE, INTC or DELL.
Elevation has a "huge" position in Facebook.
McNamee has a big position in Worddnik.
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