The Google Investor is a daily report from SAI. Sign up here to receive it by email
GOOG Rebounding As Market Rises
Markets are up as Goldman Sachs beats expectations and despite the industrial production miss. Shares of GOOG are up after sagging post-earnings. Investors continue look for Android momentum, clarity on the Motorola acquisition; regaining ground in China; the resurgence of Google TV; continued growth of YouTube; expansion of social network Google+ and progress in other initiatives (location-based services, mapping, Google Wallet, Google Music, etc.). The stock trades at approximately 11.0x Enterprise Value / EBIT. Check out our Google model, updated for first quarter earnings.
Google Adds MGM Titles To YouTube Rental (VentureBeat)
In its bid to take on Netflix and Hulu, Google has signed a deal to bring ~600 new rental titles from the MGM movie studio to YouTube and Google Play (new media strategy). Previously, Warner Bros, Sony Pictures, Universal, Lionsgate, Entertainment One, Metrodome, and Revolver Entertainment all announced partnerships with YouTube on movie rentals. The biggest holdout of the bunch has been Fox (News Corp.). YouTube began offering movie rentals through a dedicated store front in April 2010.
Google Drive (Cloud Service) To Launch As Early As Next Week (The Next Web)
The long awaited Google Drive, the company’s cloud service, could see the light of day next week. rumour has it that the service will launch next Tuesday with 5 GB of storage. Of course you can buy more, but that trumps Dropbox’s 2 GB that is included with every account. Google Drive will work “in desktop folders” on both Mac and Windows machines, which leaves the operation question unanswered. Click here for all the leaked details.
Google’s Weird Stock Split Explained (Business Insider)
Google said its board had unanimously approved “a stock dividend proposal.” But as the company explained in a letter from its founders, it’s not a dividend. It’s “effectively a stock split.” Well, actually, it’s not really a stock split either. It’s a new kind of stock, and current investors will get one share of this new kind of stock for every share of existing Google stock they own. Confused yet? Here’s what you need to know. Many are saying it’s just downright evil.
Web Freedom At Risk Says Google Co-Founder (The Guardian)
Google co-founder Sergey Brin is concerned about the future of the Web. He believes that the threat to the freedom of the internet comes from a combination of governments increasingly trying to control access and communication by their citizens, the entertainment industry’s attempts to crack down on piracy, and the rise of “restrictive” walled gardens such as Facebook and Apple. That said, Google can manually remove or demote your site from Google search results if you are caught trying to game the system. Isn’t that the same thing?
CPCs Continue To Decline, Analysts Not Happy (Business Insider)
Google’s ad revenue is determined largely by two factors: the number of clicks on ads (“paid clicks”) and how much advertisers pay for each click (“cost-per-click”). The first number has been rising fast, up 39% year-over-year. But the second number has started to decline, down for the second consecutive quarter. Most analysts seem to agree that CPCs are not the greatest measure of Google’s business, but they still monitor it.
NOW WATCH: Tech Insider videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.