Google Updates Search Algorithm - Analyst Blog

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Google Inc ( GOOG ) recently announced that it has updated its search algorithm to provide better results for all the increasingly challenging and complex search queries posted by web surfers.

The Hummingbird algorithm, introduced almost a month ago, impacts 90% of the searches made on Google. The update is aimed at giving the search engine a better understanding of concepts rather than words alone. Google is trying to better understand complicated search queries as traditional keyword based-systems give way to systems that can identify concepts and meanings in addition to words.

Google's search engine has become an integral part of people's lives and they often tend to insert phrases in the searchbox instead of just words, a fact which underlies the update. Also, the new search algorithm is expected to impact traffic to websites. The outcome of this new algorithm is not the way in which Google searches the web but it lies in the results of the searches instead. In fact, this is the most significant update that Google has made to its search engine since it redesigned the way in which websites were indexed through the Caffeine update.

Google continues to innovate. With an upcoming update to Google's search application for devices running APPLE 's ( APPL ) mobile operating system, people will be able to avail a unique facility by which they can set reminders on an android device at home and later receive them on an iPhone.

Google recorded a profit of $3.23 billion or $9.54 a share in the second quarter of 2013, up from $2.79 billion or $8.42 a share in the year-ago period. Total revenue grew to $14.11 billion, up about 19% year over year. The search ads and other commercial products related to Web content account for most of Google's revenue, which is expected to approach $60 billion this year. The company has expressed its intention of increasing investment in its core products in the future.

Currently, Google has a Zacks Rank #3 (Hold). Other stocks worth considering include Facebook Inc. ( FB ) and LinkedIn Corp ( LNKD ), both with a Zacks Rank # 2 (Buy).



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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: APPL , FB , GOOG , LNKD

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