Google+ a Growing Threat to These Two Companies

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Google has been an also-ran in social networking. Is this the year Google+ takes off?

Google+ is growing more rapidly than ever. After reducing the ease of creating anonymous accounts on YouTube, the user base continues to grow as Google (GOOG) consolidates its sites through a single user ID. More recently, Google+ improved its photography editing capabilities. Over time this could prove a threat to a number of companies.

Snapseed functions added to Google+

Google acquired Snapseed last year in March and finally added a number of features from the app to Google+. Google+ now supports crop and rotate along with filters. Post-processing is now non-destructive. This means users can continue editing photos across devices.

Adobe (ADBE) should keep a careful eye on Google. Adobe's post-processing software products are premium products for professionals, but if Google brings often used features to the masses at no cost, it could threaten Adobe.

Facebook (FB) always had a number of features Google+ is offering. Neither Facebook nor Instagram will face any threat from Google in the near-term. The user stickiness for Facebook is just too strong right now. There are still risks for Facebook over the longer term. Changing trends and consumers' fickle tastes could erode Facebook's user base. As Google+ adds more useful features in photo-processing and sharing, users have yet another site to consider.

Valuation

Google is the largest by market cap, whilst Adobe and Facebook both trade at much higher price of profits.

1. Google Inc. ( GOOG, Earnings, Analysts, Financials): Google is the world's most popular search engine. Market cap at $407.04B, most recent closing price at $1215.65.

2. Adobe Systems Inc. ( ADBE, Earnings, Analysts, Financials): Operates as a diversified software company in the Americas, Europe, the Middle East, Africa, and Asia. Market cap at $34.27B, most recent closing price at $68.63.

3. Facebook, Inc. ( FB, Earnings, Analysts, Financials): Market cap at $168.27B, most recent closing price at $68.46.

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