Google’s mobile shift will pay off

Article Excerpt

Google’s shares have moved sideways in the past year, mainly because investors are concerned that the shift toward mobile devices is slowing growth at its online advertising business. Developers have also launched new software that blocks online ads, which adds further uncertainty. However, we feel the company’s new plan to promote mobile websites in its search results will spur its mobile ad revenue. That should give it an advantage over other online ad sellers, like Facebook. To top it off, the stock could rise sharply if Google began paying a dividend or announced a big share buyback plan. GOOGLE INC. (Nasdaq symbols GOOG $540 [class C: nonvoting] and GOOGL $554 [class A: one vote per share]; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 682.4 million; Market cap: $368.8 billion; Priceto- sales ratio: 5.4; No dividends paid; TSINetwork Rating: Above Average; www.google.com) controls about two-thirds of the global Internet search market, mainly because its innovative technology helps users quickly…