Google Inc (NASDAQ:GOOGL) is accepted by many as the leading search web portal and Google generates most of their revenues through it. Google Executive Chairman, Eric Schmidt said in a recent event in Berlin that the biggest competitor for Google’s search engine is Amazon.com, Inc. (NASDAQ:AMZN). Jim Cramer and David Faber discuss about Schmidt’s comments on CNBC.
Faber quoted Schmidt’s comments about biggest competition to Google Inc (NASDAQ:GOOGL)’s search engine in an event at Berlin.
“Many people think our main competitor is Bing or Yahoo. But really our biggest search competitor is Amazon. People don’t think of Amazon as search, but if you are looking for something to buy, you are more often than not looking for it on Amazon,” Schmidt was quoted as saying.
Schmidt thinks that Amazon.com, Inc. (NASDAQ:AMZN)’s search engine has the potential to take the consumers eyeballs away from Google Inc (NASDAQ:GOOGL)’s search engine.
Cramer and Faber accepted that Schmidt’s comments were spot on. Faber pointed that when it comes to organic and sponsored search on Amazon.com, Inc. (NASDAQ:AMZN)’s platform, advertisers will play for the keywords. So he thinks that this model might generate revenues for them and has potential to stand as a competitor for Google Inc (NASDSAQ:GOOGL)’s search engine. Faber added that currently the revenue generated by this model for Amazon is around half a billion dollars, which still has a long way to go to stand opposite to Google as a formidable competitor.
Cramer mentioned that almost everything is migrating online and advertisers are ready to pay for the search engine. He feels that Amazon.com, Inc. (NASDAQ:AMZN) has a great search engine. He mentioned that most of people depend on Amazon search to find the item that they want to buy. Faber added that Amazon’s search engine has the potential to generate revenues for the company and become competitor to Google as Schmidt pointed out.
As of 30 June 2014, Ken Fisher’s Fisher Asset Management hold around 2.4 million Amazon.com, Inc. (NASDAQ:AMZN) shares and 745,000 Google Inc (NASDAQ:GOOGL) shares.