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Is Google Still Worth Buying?

Five years ago today, Google sold shares to the public for the first time. Since then, its stock has risen almost 400 percent. So is Google still worth buying? Heath Terry, senior VP in internet and entertainment software sector at FBR Capital Markets and Michael Farr, president of Farr, Miller & Washington shared their insights.

“I probably wouldn’t be buying it aggressively at these levels, but it’s still a great company,” Farr told CNBC.

Farr said he had missed the opportunity to buy Google five years ago, but managed to buy some shares on the pullback in March.

In the meantime, Terry said Google stock still has room for more growth.

“With the kind of growth we’ve still have in online advertising and within the core search business as Google continues to march towards natural monopoly in search,” he said.

Terry said Microsoft’s search engine Bing does not pose a threat against Google.

“Microsoft’s put themselves in a better position than before, but if you look at [the] algorithmic searches we know, it’s essentially a natural monopoly business,” he said. “When somebody gets to the 60 to 70 percent market share that Google has in the U.S. and worldwide, it’s going to be incredibly difficult—if not impossible—to break that.”

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Disclosure:

No immediate information was available for Farr or Terry.

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Google Competes With:

Yahoo

Apple

Microsoft

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