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Internet search giant Google Inc.  has acquired the content-sharing app – Bump – for an undisclosed amount.

Bump Technologies, the maker of the phone application, was founded by David Lieb in 2008. The app allows users to share data like contacts, business cards, photos and file wirelessly by simply bumping the devices. Recently, it added a group photo-sharing app called Flock, which can be used to share photos between Google’s Android and Apple’s (AAPL - Analyst Report) iOS operating systems. Bump also allows users to share photos between a phone and a computer.

Flock collects signals from phones and sends them to its servers, where it is matched with other phones sending similar signals to exchange information. Additionally, the app can use location technology and algorithm to locate a group of friends taking pictures at the same place and invites them to contribute to a joint album.

Google is a market leader in online advertising and it has been trying to explore various ways to increase its advertising revenues and fight competition. The company had stepped up its efforts in social media with its social networking service – Google+ – launched in 2011 which directly competes with Facebook (FB - Analyst Report).

We believe the deal will allow Google to provide enhanced photo-sharing features, thereby enhancing the already-robust suite. Also, the addition of Bump will likely bolster Google+ by bringing in a more advanced photo-sharing service. The company has already incorporated high-end online photo editing tools into Google+ to better compete with Facebook and others in the social media space.

Google continues to acquire smaller companies with specialized technology to boost its different offerings. In Feb 2013, it acquired Channel Intelligence for $125 million to boost its e-commerce business. Earlier, this year, it acquired an infrastructure startup company, Talaria Technologies, to boost its cloud offerings. Google also acquired a mobile mapping and navigation company – Waze Inc. – for about $1.1 billion.

In the second quarter of fiscal 2013, Google’s gross revenue (including TAC) was $14.10 billion, representing sequential and year-over-year increases of 1.0% and 19.5%, respectively. However, earnings of $7.81 missed the Zacks Consensus Estimate by $1.23 due to declining CPCs.

Google has a Zacks Rank #4 (Sell). Another stock that is performing well at current levels includes SanDisk (SNDK - Analyst Report), carrying a Zacks Rank #1 (Strong Buy).

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