Can Google Stores Catapult GOOG Stock Higher?

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Changes are afoot at Google Inc (NASDAQ:GOOG, NASDAQ:GOOGL).

CFO Patrick Pichette abruptly announced his retirement this week, the company plans to roll out a new version of its botched Google Glass product yet again in 2015, and, in an interesting strategy shift, brick-and-mortar Google Stores are coming to London.

can google stores catapult goog stock higherThe GOOG stock price could use a boost from something, that’s for sure. Over the last year, GOOG’s 8% fall underperformed the S&P 500 (INDEXSP:.INX) by 17 percentage points.

Not pretty. And Google stock’s recent returns look even more miserable when compared to Apple Inc. (NASDAQ:AAPL) stock, which has merrily roared 60% higher in the last 52 weeks.

But is a Google store really going to help the company’s share price?

Why a Google Store Makes Sense

GOOG has a pretty ubiquitous online presence, with its search engine enjoying a 58% market share globally according to the most recent figures from netmarketshare.com.

But for GOOG stock to really take off, the company needs to gain and defend market share elsewhere, ensuring the continued success of its Android platform and attempting to muscle in on Microsoft Corporation (NASDAQ:MSFT) and AAPL’s stranglehold on desktop and laptop operating systems.

The new Google store in London will showcase its Android mobile devices, Chromebooks, and Chromecasts, giving consumers a central location where they can interact with Google products and gain a feel for the experience.

It’s about time.

AAPL, of course, has enjoyed enormous success through its branded store locations, the first of which opened in 2001. And Best Buy Co Inc (NYSE:BBY), after nearly going under due to the rise of Amazon.com, Inc. (NASDAQ:AMZN) and “showrooming” during the rise of ecommerce, is now embracing its role as a showroom for electronics that customers want to try out before buying.

Google Must Commit to the Concept to Make a Difference

Obviously, one retail location isn’t going to change the game for GOOG stock. Especially when that location is nested within a Currys PC World as a “shop within a shop.” And Google will probably have to abandon the business model it’s championing in this location wherein GOOG surrenders all sales to Dixons Carphone PLC (LON:DC), the owner of Currys.

While GOOG has previously teamed up with Best Buy to market its cloud-centric Chromebook laptops, Google Stores offer the innovative tech company a better opportunity to control its brand image.

The zany and futuristic feel GOOG tries to cultivate (just take a gander at the company’s plans for its next campus in Mountain View) will remain intact in the Google store in London. You’ll be able to digitally spraypaint the Google logo on a dedicated screen there and virtually fly around the world via surround screens hooked up to Google Earth.

The London store alone can’t move the needle for GOOG stock, but giving its brand a more consumer-facing, physical presence is ultimately necessary if Google seriously wants to take aim at AAPL and MSFT.

As of this writing John Divine owned shares of GOOG stock, GOOGL stock, and AAPL stock. You can follow him on Twitter at @divinebizkid or email him at editor@investorplace.com.

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Article printed from InvestorPlace Media, https://investorplace.com/2015/03/can-google-stores-catapult-goog-stock-higher/.

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