Google Inc (NASDAQ:GOOGL) is facing a hard time coping up with challanges in its core business like mobile and ads. The company is unable to come up with a solution for market traction problems. In a program on CNBC, Joshua Brown said that Google Inc (NASDAQ:GOOGL) stock is not down because of the latest problems in Europe, rather there are some other big issues that are becoming a stumbling block for the search engine giant. He said that investors must stay away from Google Inc (NASDAQ:GOOGL) because the company is not in a good shape.
Brown said that the latest problem on Google Inc (NASDAQ:GOOGL) in Europe will soon be solved, but the major market issues that are surrounding the company are long term, unless Google do something tangible about them. Brown thinks that mobile is the real area where Google Inc (NASDAQ:GOOGL) is lagging. The company is facing enormous pressures from its competitors like Facebook. Google Inc (NASDAQ:GOOGL)’s core business, search and ads is in a direct threat from Facebook. It is unable to create an ecosystem around its core baseline products and services. It’s loose-ended system is creating a lot of problems. Instead of focusing on apps and mobile, the company is heavily investing in health sectors, genomic, drones, which are not going to give market traction and revenue, at least in the short term. On the other hand, Facebook is focusing on areas that are ripe for investments.
Brown thinks that Google Inc (NASDAQ:GOOGL) stock is becoming weak and it is not a good option for investors currently.
David Tepper’s Appaloosa Management Lp owns around 600,000 Google Inc (NASDAQ:GOOGL) shares.