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GOOG Down 30% YTD
Shares of Google have lost nearly a third of its value year-to-date on investor concerns about secondary growth drivers as well as issues in China, the largest Internet market. Potential catalysts include Android and mobile adoption; the release of Chrome operating system this fall; as well as traction in other newer (and numerous) initiatives. The stock trades at approximately 16x 2010 EPS and 13x Enterprise Value / EBIT, inexpensive relative to historical trading levels and the broader Internet group.
Droid X Selling Out In Pre-Sales (Android Guys)
Best Buy stores have halted sales for the Droid X handset, less than a week after opening up pre-orders. According to sources, customers have blown through the expected allotment, considerably higher demand than anticipated. Hopefully things resume quickly as neither Google nor Verizon can afford to be sitting on two incredible Android-based phones that can’t stay in stock.
Android Monthly Growth Rate Around 60% (paidContent)
Google CEO Eric Schmidt said the company is activating 160,000 Android phones a day, up from only 100,000 a day in mid-May, or a monthly growth rate of 60%. At this rate, Google is activating 4.8 million devices a month; that’s 15 million a quarter. While the activation trajectory is astounding, it still pales in comparison to Apple, which reported 600,000 iPhone 4 orders in a single day.
iPhone Users Are Happier With Their Machines (AdMob)
The AdMob’s (a Google company) May Mobile Metrics Report has found iOS users are more satisfied with their mobile device than users on other platforms. 91% of iPhone users and 88% of iPod touch users would recommend their device to friends compared to 84% of Android and 69% of webOS (Palm). Additionally, twice as many iPhone (and iPod touch) users regularly download paid apps as their Android counterparts.
Google Taps Cisco For An Office Tablet Assault (PC World)
Cisco announced its iPad-for-businesses running Google’s Android operating system will be available in early 2011. The tablet can connect to a corporate network through an Android version of Cisco’s VPN client; join video calls, TelePresence meetings, and WebEx Connect sessions; and control a virtual desktop through the touchscreen. If the iPad doesn’t catch on in the business world (being seen as more of a consumer product), this could be a viable alternative.
Google China Awaits licence Renewal (CNN)
The drama builds as Google awaits a decision from Beijing on whether its operating licence will be renewed. Without the licence, Google would effectively “go dark” in China. Whether Google’s move to effectively relaunch google.cn will be enough to appease government regulators is unclear. Most likely the government will see it as a ploy and punish the company appropriately.
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