Google Is Poor At Creating New Products, Calacanis Says

Is there something wrong inside of Alphabet Inc GOOG GOOGL's headquarters? If you ask Jason Calacanis, the founder of Inside.com, there are many things that aren't right with one of the world's biggest and most visible companies.

Alphabet hasn't released an innovative and compelling product since Gmail, Calacanis said as a guest on CNBC's "Squawk Alley." Everything since then that Alphabet released has been made possible due to acquisitions.

Calacanis' comments come at a time when Google introduced its own take on a news feed called "the feed" and as expected, he isn't impressed with the new replacement for Google Now. Specifically, all the news feed will accomplish is show a user "more of what you already know" and turn into an "echo chamber" since content will be generated based on each user's individual profile likes.

But Google's news feature has been in disarray for years and should be looked at as "the enemy of content companies," he said. Google started its news search curation under a revenue sharing agreement with content companies but now when many people search for news headlines they find what they need in the search result page which eliminates the need to click on the headline.

"They really double crossed a lot of their content providers to the point where The Wall Street Journal and New York Times don't want to deal with them anymore," Calacanis said.

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