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GOOG Off To A Slow Start As Markets Rebound
Stocks are on an upward move in early trading after the report of better-than-expected unemployment numbers, falling below 400K for the first time in four months. Shares of GOOG are bouncing along, currently up with the rest of tech. Catalysts include continued Android momentum in the smartphone and tablet markets worldwide; regaining ground in China; any revival or partners for Google TV; the roll-out of Google Music and social network Google+; and progress in other newer initiatives (location-based services, mapping, gaming, Chromebooks, etc.). The stock trades at approximately 11.6x Enterprise Value / EBIT, inexpensive relative to historical trading levels.Top Online Activities Remain Search And Email, Meaning Google (Pew Internet)
Despite the ongoing social networking war with millions of users flocking to Facebook, Twitter, and/or Google+, the top favourite online activities according to Pew Internet still seem to be the basics: search and email. That bodes well for Google. Based in information gathered in April and May 2011, the report shows that an unsurprising 92% of online adults use search engines to find information online (and 59% do this every day). Similarly, 92% of online adults use the Internet to check email (61% perform this task daily).
Microsoft Slowly Chipping Away At Google’s Search Share (comScore)
Bing did not gain any market share between June and July (14.4%), according to the latest numbers from comScore. But Yahoo was up a notch (from 15.9% to 16.1%), which amounts for a gain for Microsoft and a slight loss for Google (from 65.5% to 65.1%). While the month-to-month numbers don’t mean much, the trend is there: Microsoft is slowly chipping away at Google’s share.
Social Becoming More Important To Search (GigaOM)
Google+ is the company’s latest effort to get a handle on something that so far has eluded the company: access to user generated data such as status updates, photos and comment. These social “signals” are becoming a crucial part of how people behave online. Google has to figure out how to capitalise on those kinds of signals, in order to maintain its dominant position between Internet users and the information they want.
Daily Trader: Google Is A Confident Stock Pick In Shaky Market (The Street)
Will slower economic activity negatively impact a company such as Google? All signs point to Google doing relatively well no matter what the economy is doing. If anything, one could make the case that search use and advertising will increase during a weak economy. Shares of Google closed the month of July at $607.22 and since then, shares are off ~10%. The selling is indiscriminate considering it was only a few weeks ago that the company trounced earnings estimates.