THE GOOGLE INVESTOR: GoogleTV Looking To capitalise Where Apple Failed

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Photo: Associated Press

GOOG Fighting Back
Shares of GOOG are up from monthly lows of around $450 on Google Instant and GoogleTV hype. Other catalysts include continued Android and mobile traction; the release of Chrome operating system this fall; regaining momentum in China (although there was a report out this morning from Reuters stating China had partially blocked the company’s services again); as well as progress in other newer initiatives (Google Me, gaming, social, etc.) The stock trades at approximately 14x Enterprise Value / EBIT, inexpensive relative to historical trading levels and the broader Internet group.Google Estimate Hike Due To Google Instant (Barron’s)
After speaking with search engine marketers, Benchmark Co. believes that Google’s new Instant search feature will increase search volume and average cost-per-click. The analyst now forecasts 19% and 2% year-over-year and sequential net revenue growth in third-quarter with earnings per share of $6.50. The firm thinks the market is underestimating the impact of the innovation and it maintains a Buy rating on the stock.

GoogleTV Looking To capitalise Where Apple Failed (Wall St. Cheat Sheet)
Google is launching its TV in conjunction with a cadre of strategic partnerships. Partners will range from actual hardware suppliers to content providers via the accessibility of applications. GoogleTV features the Chrome browser and synchronisation with the Android phone operating system (open source). But the jury is still out on if this will stick. While there is demand for integrated media, Apple hasn’t had success with it either. Given the recent run-up in the stock, investors seem enthusiastic.

Google Apps Gaining Momentum (Seeking Alpha)
Google is making some serious strides into the enterprise as more than 3 million businesses, schools, and government agencies with about 30 million employees are using Google Apps. That gives Google more enterprise customers than Salesforce, which has about 2 million. With Microsoft BPOS and then IBM LotusLive Notes now providing strong cloud computing offerings, Clint Boulton at eWeek would be surprised if Google makes it to 4 million business customers by this time next year. Nick Saint at Business Insider notes that while a majority of these Apps are free, the point isn’t to make money, but to eat away at Microsoft’s cash cow.

Google Call Will Give Skype A Run For Its Money (The Motley Fool)
Can Google make consumers abandon Skype and migrate to its Gmail calling? I did. Why open another application when you’re already on Google? There’s no doubt in my mind that Google will become a tough competitor for Skype, not to mention pricing will affect the carriers as well.

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