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GOOG Sideways As Markets Sink
Markets are tanking on doubts about this weekend’s EU summit and as Greece’s international creditors warn that a second rescue package will not be enough. In the U.S. unemployment benefits dropped but missed expectations and the Philly Fed Index survey just smashed expectations. Shares of GOOG are trading along the flatline while the rest of tech is sinking deeper into the red. Catalysts include continued Android momentum in the smartphone and tablet markets worldwide; Motorola acquisition approval and integration; regaining ground in China; any signs of life for Google TV (including Motorola); the roll-out of Google Music, social network Google+ and Google Wallet; and progress in other newer initiatives (location-based services, mapping, gaming, daily deals, etc.). The stock trades at approximately 11.6x Enterprise Value / EBIT, inexpensive relative to historical trading levels.Google Has A Lot Riding On Android 4.0 (ZDNet)
The effort will prove whether the Google has design skills and can win over customers. Google unveiled Android 4.0, also known as Ice Cream Sandwich. The search giant has a lot riding on the mobile operating system:
- Android doesn’t update as much as it used to, so users need more polish and expectations are higher
- Ice Cream Sandwich is the great unifier, bridging the phone and tablet gap
- Apple has more distribution and Microsoft’s Windows Phone will follow
- Google has to prove it has design chops
Pretty high stakes. Take a photo tour of the new operating system.
The Scariest Chart For Apple Yet (Business Insider)
Forget Apple’s earnings miss. The company has one looming concern that’s much bigger than a single weak quarter: Android. Google’s mobile operating system has been taking smartphone market share at an unbelievable clip (see chart). As Android grows into a ubiquitous platform, Apple’s edge with developers could be weakened. And if it loses developers, it loses its software advantage. There’s just no denying that Android’s domination isn’t something to give Apple investor’s concern over the next five years.
Android Gains Ground In The Enterprise As People Wait For New iPhone (Business Insider)
Android gained ground in businesses last quarter as employees delayed iPhone purchases to wait for the new model, according to Good Technology statistics. Android phones made up 39% of all enterprise smartphone activations that it tracks, up from 33% last quarter. The iPhone, meanwhile, dropped from 66% to 61%. That drop is also reflected in iPhone 4 activations, which dropped from 32% to 28% during the quarter. I suspect that that number will rise dramatically though over the next quarter.
Google Ventures Takes A Moneyball Approach To Investing (TechCrunch)
Google Ventures is all about the data. Beyond being able to help teams solve their UX, search and scaling issues, the Ventures team mixes both qualitative and quantitative data to put together the best approach to deciding in which startups to invest. Partner Bill Maris insists that it does not really work for Google. It does not make strategic investments for Google. Rather, it acts as an independent venture fund with one limited partner, Google. With the goal of making money.
Trial Postponed In Oracle / Google Java Lawsuit (Reuters)
As we all know, Oracle sued Google last year alleging Android mobile operating technology infringes on Oracle’s Java patents. But Google and Oracle will not square off in a high stakes patent trial by the end of October. A U.S. judge formally delayed the trial date with no new date in place giving the two tech giants potentially more time to resolve things out of court.
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