Google's Shopping Spree: What's Next For Mobile Web Stocks?

(List compiled by Becca Lipman. Options data sourced from Schaeffer’s, all other data sourced from Finviz.)

In this round of Google vs Apple, Google pulls a quick one and acquires Motorola Mobility.

For a mere $12.5 billion in cash, Google has secured itself a position in the bushiness of manufacturing mobile media devices and made itself a front-runner in the “End of the PC Era.”

Google, a powerhouse unto itself, has a history of profitable acquisitions. Their takeover of Android in 2005 turned the company from a small mobile software company into a household name. Now it’s making its mark with Motorola.

Google’s acquisition of Motorola means it can produce mobile devices at competitive prices, complete with all the innovation that helps to define the company. Motorola Mobility Holdings Inc (MMI) has already started to reap in the benefits, as shares of MMI jumped 36.70% upon news of the acquisition, from $24.47 at its Friday close to $38.66 on Monday’s open.

The implications of the acquisition are brilliant. While people are moving towards a mobile-media-centered lifestyle (tablets, smart phones, and who knows what’s next), Google stepped in to give Apple a run for their money. After all, Apple’s recent triumph over Exxon as the largest company in the world indicates there’s a lot of money to be made in the market.

Furthermore, “phones running the Android system have become increasingly popular, accounting for 43.4 per cent of smart phones sold in the second quarter, according to Gartner research.”  (via NY Times)

If the near future really is an “end of the PC era,” then phone carriers and producers may have a bright future indeed.

Interested in trading on that future? To help you find ideas, we went to a list of mobile web stocks recommended by TV personality Jim Cramer. To boost the quality of the list, we wanted to identify mobile web stocks with bullish options.

analyse These Ideas (Tools Will Open In A New Window)

1. Access a thorough description of all companies mentioned
2. Compare analyst ratings for all stocks mentioned below
3. visualise annual returns for all stocks mentioned

1. NetLogic Microsystems Inc. (NETL): Semiconductor Industry. Market cap of $2.12B. Put/call ratio has decreased 25.99% over the last 10 trading days (from 2.27 to 1.68). The stock has performed poorly over the last month, losing 18.16%.

2. Xilinx Inc. (XLNX): Semiconductor Industry. Market cap of $8.02B. Put/call ratio has decreased 22.77% over the last 10 trading days (from 2.02 to 1.56). Might be undervalued at current levels, with a PEG ratio at 0.93, and P/FCF ratio at 12.92. The stock has gained 21.65% over the last year.

3. SanDisk Corp. (SNDK): Semiconductor Industry. Market cap of $8.86B. Put/call ratio has decreased 16.33% over the last 10 trading days (from 0.98 to 0.82). The stock has lost 15.01% over the last year.

4. Skyworks Solutions Inc. (SWKS): Semiconductor Industry. Market cap of $4.0B. Put/call ratio has decreased 15.63% over the last 10 trading days (from 0.64 to 0.54). The stock has gained 22.76% over the last year.

5. ON Semiconductor Corp. (ONNN): Semiconductor Industry. Market cap of $3.39B. Put/call ratio has decreased 11.11% over the last 10 trading days (from 0.45 to 0.4). The stock has performed poorly over the last month, losing 15.44%.

6. CIENA Corp. (CIEN): Communication Equipment Industry. Market cap of $1.22B. Put/call ratio has decreased 10.24% over the last 10 trading days (from 1.27 to 1.14). This is a risky stock that is significantly more volatile than the overall market (beta = 2.11). The stock has had a couple of great days, gaining 5.38% over the last week.

7. ARM Holdings plc (ARMH): Semiconductor Industry. Market cap of $11.54B. Put/call ratio has decreased 6.88% over the last 10 trading days (from 1.6 to 1.49). The stock has gained 73.67% over the last year.

8. Tellabs Inc. (TLAB): Communication Equipment Industry. Market cap of $1.46B. Put/call ratio has decreased 6.67% over the last 10 trading days (from 0.3 to 0.28). The stock has lost 42.86% over the last year.

9. Tekelec (TKLC): Processing Systems & Products Industry. Market cap of $507.56M. Put/call ratio has decreased 6.17% over the last 10 trading days (from 0.81 to 0.76). The stock has had a couple of great days, gaining 5.76% over the last week. The stock has performed poorly over the last month, losing 11.67%.

10. Tessera Technologies Inc. (TSRA): Semiconductor Equipment & Materials Industry. Market cap of $688.29M. Put/call ratio has decreased 5.77% over the last 10 trading days (from 1.04 to 0.98). The stock has performed poorly over the last month, losing 12.85%.

Interactive Chart: Press Play to see how analyst ratings have changed for the stocks mentioned above. Analyst ratings sourced from Zacks Investment Research.


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