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Rackspace's Startup Liaison Officer

Google's Q2 2013 earnings come in light on revenue and profit

Published

Google's profits are gonna be stagnant for several quarters.

Why? Advertising is tapped out and we're moving to mobile where advertising just doesn't work all that well. Google's innovations (Google Glass, Driverless Cars, Contextual OS's) won't bear fruit for at least four more quarters (and the big structural changes won't happen for years -- I sense that Larry Page is moving Google from an advertising business to a transactional one).

Why move to a transactional business? Because advertising is going to be a VERY HARD business model to make work in mobile.

If Google can move to contextual and transactional it will win, and win big, but the next four to seven quarters will be bumpy.

That said, Google is best positioned for the next age and is the most innovative big company, by far, that I'm watching right now (heck, it's more innovative than most startups I track).

Being an investor right now is tough. If you had $1,000 which one would you invest in: Google or Microsoft?

For me the answer is easy: Google all the way.