Google Inc. (GOOG), the world's largest online search engine, has acquired an anti-malware company called Spider.io. Given the small size, Google did not disclose the financial terms.
With this acquisition, Google intends to eliminate fraudulent practices in online advertising. It aims to use the fraud-fighting technology of Spider.io to detect frauds in the video and display ads space. Google also targets the detection of click fraud, where culprits use automatic programs to increase the number of clicks on an advertisement and thereby increase revenues.
The digital world is financed by advertisements but malvertising is increasingly disrupting these economics. Google has been focusing on improving the digital ecosystem. Last year, Google refused applications from a lot of websites wanting to join its network due to its suspicions regarding their activities.
Spider.io, a three year old British company, specializes in battling frauds in online advertising by combating malware-driven traffic. These malwares can cost companies millions of dollars a month.
Google is currently monitoring the security space. It is trying to discover new ways to combat online frauds, prevent hacking of passwords, ensure protection against malicious software and protect both public and enterprise data.
Recently, Google acquired SlickLogin in order to safeguard login details and keep data safe.
Google currently holds a Zacks Rank #3 (Hold).
Other stocks worth considering in the same sector include Baidu, Inc. (BIDU), Interxion Holding NV (INXN) and Akamai Technologies, Inc. (AKAM). While Baidu and Interxion Holding carry a Zacks Rank #1 (Strong Buy), Akamai holds a Zacks Rank #2 (Buy).
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