Google Investor: Wall Street Sees Upside From Strong Search Results This Year

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GOOG Shares Rebound After China-Related Weakness
Google stock rebounded last week after news the company would pull out of China dragged down the shares.  GOOG shares ended Friday’s session at $562.69 (17.9x 2010 EPS and 15.7x Enterprise Value / EBITDA). Upcoming catalysts include March quarter earnings (likely the third week in April); updates on changes to paid search results; Android adoption; and benchmarks surrounding newer initiatives (Wave, Chrome, Base, broadband network, etc.).

Android Mobile Platform A Better Bang For Your Ad Buck
(Android Guys)
AdMob released it’s mobile survey last week and while it showed that Android was nibbling at the iPhone OS market share, it also illustrated that Android users consume more ads. Android’s share of ad requests jumped to 24% in February 2010, up from 2% a year ago. Apparently, the average Android user is more likely to view advertisements than users of other platforms.  This suggests mobile advertising dollars is much better spent on Android users than on iPhone or Blackberry users.

Deutsche Bank Analyst Says Strength In Search Still favours Google
After attending the Search Engine Strategies conference in New York City, Deutsche Bank internet analyst  Jeetil Patel thinks industry search volumes and ad budgets remain strong, which favours search giant Google. He also points out that based on its forward EPS multiple, Google stock is trading at a 24% discount to it’s 3-year average.  As a result, Patel believes the stock is attractive at current levels.

Google Failed In China Because It Didn’t Know The Market
(Investment U)
Investment U issued an article earlier this year which is applicable even more so now with Google’s issues in China. It depicts the number one reason for Google’s less than stellar performance in the communist country as pure Western civilisation arrogance and not enough due diligence. Simply put, Google didn’t know its market.

Google TV Coming To A TV / Computer Near You
Will Richmond at VideoNuze analyses what a successful launch of Google TV would mean for both Google and the TV industry. At this point Google is positioning itself as Switzerland; it is there to enhance and be a “friend to the industry.” The Google TV box would come with a full browser and have the ability to connect to the Internet, effectively connecting all online video content to the TV. Like they do with any meaningful attempt to launch “over-the-top” TV, cable providers will likely fight this if it starts to achieve scale.

1,100 U.S. Cities Want Google To Build Them Huge fibre Networks
(Business Insider)
Google’s high-speed broadband deployment application window has closed with 1,100 U.S. cities vying for the service. This push comes as the Federal Government is pushing for subsidized, high-speed broadband for more connectivity throughout the country. PC Mag reports that this has the potential to be quite the revenue generator for Google, provided the company figures out monetization.

Google’s Move To Hong Kong Making Very Little Difference
(The New York Times)
People in China don’t care about Google. Most use Baidu. When Google pulled search off the mainland and moved it to Hong Kong, searches for previously censored words and phrases saw an uptick, however quickly trailed off. “Ultimately, indifference may prove more effective than any firewall,” as Chinese Internet users return to business as usual and the life they are used to.

The Google Investor is a daily report from TBI Research. Sign up here to receive it by email.

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