The Google Investor is a daily report from SAI. Sign up here to receive it by email.
GOOG Down Despite Confidence Bump
The market got a shot of surprising consumer confidence this morning. However, it wasn’t enough to get GOOG out of the crapper as the stock continues to sell off marginally. Stock specific catalysts for GOOG include continued Android and mobile traction; the release of Chrome operating system this fall; regained momentum in China; as well as progress in other newer initiatives (Google Me, gaming, etc.) The stock trades at approximately 12x Enterprise Value / EBIT, inexpensive relative to historical trading levels and the broader Internet group.
Google Entering Pay-Per-View With The Rest (The Financial Times)
As per the latest reports, Google will unveil a new pay-per-view movie service on YouTube. The company, which is expanding operations in many segments in recent times, is reportedly in negotiations with some of the leading studios of Hollywood. rumour has it YouTube will charge users $5 per film. It should be quite the show down with Hulu, Netflix and iTunes all in the mix. Cable companies should be worried. Especially, when consumers get their hands on Google TV and Apple’s iTV.
There’s No Such Thing As A Free Lunch, Even With Android (Business Insider)
Microsoft wants to charge $15 per copy for Windows Phone 7 licenses while Google gives Android away for “free.” That’s not going to fly. However, Microsoft argues that Android comes with all sort of hidden costs that drive up the per-unit expenses. Henry Blodget at Business Insider outlines the specific hidden costs that a person familiar with Microsoft’s mobile strategy says make Android much more expensive than it seems. Is this true? Help us find the answer.
Going Social, Google Acquires Another Company – SocialDeck (InsideSocialGames)
Google acquired SocialDeck as it continues to push into social networking and gaming to launch Google Me, the company’s social network. SocialDeck is a mobile game development company whose gaming portfolio includes Shake & Spell, colour Connect and Pet Hero. SocialDeck also has a product called Spark that connects game players across Facebook, the iPhone and BlackBerry. Terms of the deal weren’t disclosed. This purchase comes on the heels of the company’s acquisition of social gaming company Slide and a social event export company Angstro.
Daily Trader: Bullish Pressure Building (Learning Markets)
Shares of GOOG lost some ground during trading yesterday, but it appears there is some bullish pressure building up in the background. Looking at money flows, $17.4 million poured into the stock; $200 million flowed into the stock on uptick trades while only $180 million flowed in on downtick trades. This gives GOOG an up / down ratio of 1.1. GOOG has lost 6.7% during the past month and is currently trading below its 20-day, 50-day and 200-day moving averages.
Google Opens Low-Income Housing Tax Credit Fund (Business Wire)
Google is everywhere! A division of U.S. Bank has arranged and will manage an $86 million Low-Income Housing Tax Credit (LIHTC) fund for Google. The fund will provide a source of funding for the construction and operation of 480 affordable rental housing units for low income families and senior citizens in seven communities throughout the West and Midwest. Google is bringing fresh capital to the industry and marks a continuing expansion of the affordable housing investor base beyond traditional investors such as banks and insurance companies.