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3 Great Gadget Stocks to Buy, and 3 to Sell

These are the best and the worst of the tech sector

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Stock to Buy: Google

googleLogo e1285771458172 3 Great Gadget Stocks to Buy, and 3 to SellWhile Google isn’t exactly a secret on the Street, soaring 25% year-to-date to flirt with $900 a share, there are reasons to expect the big run to continue.

Google is in the enviable position of low expectations on the hardware front; I’m not talking about goofy Google Glass, but instead the Nexus family of devices and the rumored “X Phone.” Even if GOOG falls a bit short, it’s not like investors have everything riding on one hardware launch.

But don’t think Google is a messy operation content with simply throwing things up to see if they work. Ever since 2011, when Larry Page took over as chief executive, a number of creative but money-losing efforts have fallen by the wayside. Google Reader is just one recent example of the cost-cutting victims.

At the same time, Google has gotten more aggressive about cross-marketing its products or using litigation to protect patents and fight back antitrust lawsuits. Some claim Google is going back on its motto “don’t be evil,” but I say it’s simply a $300 billion business acting like a $300 billion business. There’s nothing wrong with focusing on the bottom line, and subsequently, your investors.

One caveat: Just remember that Google doesn’t make much money on the OS yet and that overall smartphone operations aren’t a primary driver of revenue right now, so investors need to keep in mind that the underlying ad business still is what makes Google tick.


Article printed from InvestorPlace Media, http://investorplace.com/2013/07/3-great-gadget-stocks-to-buy-and-3-to-sell/.

©2014 InvestorPlace Media, LLC

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