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Google's Plan To Dominate Tech's 'Big Sea Change'

Google's name may be synonymous with desktop Internet search, but now the tech giant is shifting its focus to a new field -- mobile search.

In a Fast Money exclusive, Vic Gundotra, Google's VP of engineering reveals what you can expect.

Fast: In terms of mobile search, when will it become a substantial driver of growth as compared to standard PC search?

Gundotra: I think we’re going through a big sea change. We’re seeing consumers not just use the PC but more and more use the mobile phone to access the web. And that includes accessing Google. Our search traffic has gone up 5 times in just the last two years. And we see that trend accelerating.

Fast: When will that translate into a catalyst for the stock price?

Gundotra: Here’s the trend to watch. Two to three years ago smart phones were a very small niche category. That has completely changed. The average soccer mom has a smart phone. She wants to browse the web; she wants applications. That is the key signal. We’re seeing that segment of the mobile phone explode.

Fast: What’s the strategy for partnering up?

Gundotra: It’s absolutely our goal to make smartphones as broadly available as possible. But we’re doing that in partnership with OEMs and carriers. We think as a industry there’s something very exciting we can do. Efforts like the Verizon Droid is an example where we’ve partnered with a carrier and produced an exciting product at a great price point.

Fast: Who’s network is best positioned to handle the growing capacity?

Gundotra: As smartphone explode there is an increased demand on the networks. We think the carriers are doing a very good job at planning ahead for these high speed networks and improving their capability of handling more traffic. So we think the problem will largely be handled by carriers.

What’s the trade?

I’m long Google, says Joe Terranova. With the 100-day moving average at $560 and the 200-day moving average at $500 I’d get long with a stop at $500 – and I’d add to my position if the stock gets up above $560.


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Trader disclosure: On February 22nd, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Kaminsky Owns (LULU) Puts; Kaminsky Owns (EPV); Seymour Owns (AAPL), (F), (INTC), (BAC), (INTC), (TSL); Najarian Owns (BP); Najarian Owns (CMC) Call Spread; Najarian Owns (INTC) Calls; Najarian Owns (MYL); Najarian Owns (MS); Najarian Owns (TEVA), (TEVA) Puts; Najarian Owns (TMO) Calls; Finerman's Firm Is Short (IJR), (MDY), (SPY), (IWM); Finerman Owns (AAPL); Finerman's Firm Owns (BAC), (BAC) Leap; Finerman Owns (BAC) Preferred, (BAC); Finerman's Firm Is Short (CAKE); Finerman's Firm And Finerman Own (GOOG); Finerman's Firm Owns (KFT), (M), (SKS), (TGT); Finerman's Firm And Finerman Own (WFC) Preferred; Finerman's Firm Owns (WMT); Finerman's Firm And Finerman Own (JPM); Finerman's Firm Owns (MCD); Finerman's Firm Owns (YUM); Kelly Owns (FXE) Puts; Kelly Owns (QLGC) Calls; Kelly Owns (AMZN) Calls; Kelly Owns (HOV) Calls; Kelly Owns (FXE) Puts; Kelly Owns (FXE) Puts

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