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GOOG Down With Markets
Stocks are nosediving today on fears about Europe and the overall economy. And the markets took another big leg down following a dismal report on manufacturing from the Philly Fed this morning. Shares of GOOG are off more than 4% alongside the rest of tech, the S&P 500 and the Dow. 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 11.2x Enterprise Value / EBIT, inexpensive relative to historical trading levels.S&P Let’s Google Have It, Downgrades The Stock To A Sell (Mashable)
Ouch. Equity analysts at Standard & Poor’s downgraded Google’s stock rating from “Buy” to “Sell”, following the Motorola Mobility announcement. Analyst Scott Kessler said that the Motorola purchase puts Google at ris and the patent portfolio won’t ease Google’s patent woes and sees “greater risk to the company and stock.” More implicitly, will negatively impact growth and destroy margins. He also dropped the stock price-target from $700 to $500.
Google Is Not Going To Turn Motorola Into Its Chosen House Of Android (TechCrunch)
Jason Kincaid says that theory is completely wrong. Android, and the smartphone industry in general, is still very much in a land grab mode. There are billions of people who are going to buy smartphones in the next five to 10 years. Billions. Take every Android phone sold thus far, then multiply it by a factor of 10. Or 30. And in no way does Android needs to start making more money immediately in order to justify the huge investment. That would be akin to Facebook doing a major advertising push circa 2005. Stupid.
Now Google Can Focus On Google TV With Motorola Taking The Lead (Android and Me)
Google TV is not doing very well right now, to say the least. And now that the initial dust has settled over the Google acquisition of Motorola, analyst eyes are turning deeper into the deal and beyond the obvious. More than just mobile phone patents, the Motorola acquisition puts Google squarely where it has wanted to be for a while: on the set top box. Motorola is also a huge company with a lot of expertise in the area and a strong relationship with TV operators. People are betting against Google TV, the reason being the cable companies.
Is Google+ Getting On Facebook’s Nerves? (GigaOM)
Facebook may have had the social-networking business more or less to itself for the past few years, thanks in part to the rapid decline of MySpace, but Google has made it obvious that it wants to become a major player. While it is still early, the launch of Google+ shows that the search giant may just have what it takes to put some competitive pressure on the social giant. Case in point, not only did Facebook quickly tweak its game-related features to make them more appealing to developers such as Zynga, but Sean Ryan seemed downright snippy when asked about this new competitor.
Too Bad For Android (And Everyone But Apple), Consumers Only Want The iPad
(The New York Times)
According to a survey conducted by Robert W. Baird, a Milwaukee-based wealth management and analyst company, consumers who already own or plan to buy a new tablet are only interested in one thing: the iPad. Of 1,114 people, more than 50% of said they already owned a tablet or were interested in buying one soon, with 95% of these respondents choosing the iPad.
YouTube Ends Battle With NMPA, Opening Up Monetization Abilities (Los Angeles Times)
Ending a four-year legal battle with over 3,000 independent music publishers, YouTube has agreed to pay licensing fees with the National Music Publishers Association (NMPA). The deal, which covers songwriting rights, paves the way for YouTube and Google to begin monetizing user-generated videos that contain music written by artists represented by the NMPA. The arrangement, however, does not cover the four major music publishers (EMI Music Group, Universal Music Group, Warner Music Group and Sony Music Entertainment), each of whom has separate licensing contracts with YouTube.