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GOOG Up With Market
The market is up on the news that retail sales blew away expectations with a 1.2% gain, and despite Best Buy’s miserable Q3 earnings report this morning. Shares of GOOG are up, after a sudden dip in early trading. Upcoming catalysts include continued Android growth; regaining momentum in China; adoption of and media partnerships for Google TV; and progress in other newer initiatives (location-based services and mapping, gaming, social, etc.). The stock trades at approximately 15x Enterprise Value / EBIT, inexpensive relative to historical trading levels and the broader Internet group.
Analyst Raises Outlook On Google Citing Accelerating Online Trends And Mobile (Barron’s)
Wedbush Morgan analyst Lou Kerner raised his rating on Google to Outperform from Neutral, with a $750 price target. He believes that trends in mobile and time spent online are accelerating, boosting global search activity. The company is also benefiting from an improving global economy, Google Instant and dislocation from the Bing / Yahoo integration. Kerner raised his estimates for the current quarter to $6.2 billion in revenue and $8.21 in EPS.
The Time Is Right For Google To Issue A Dividend (The Motley Fool)
Google is carrying $33.4 billion in cash and marketable securities on the balance sheet, but the company is not going to use it. The time is right to initiate a dividend policy according to many investors and Rick Aristotle Munarriz at The Motley Fool. His rationale: 1) the company can’t buy anything that big because of anti-trust, 2) tech companies have recently turned up their noses to share buybacks, 3) this isn’t Ford here, there is little to no cyclically, 4) interest income is a ridiculous reason.
Google Ranking Own Proprietary Pages Ahead Of Others In Search Results (The Wall Street Journal)
Google is increasingly promoting some of its own generated content over that of rival websites in search results. The giant is developing more content or specialised-search sites (Google Health, Google Places, Google Boutique, etc.) in hopes of boosting ad revenue and prominently displaying links to them. That’s pissing off websites that rely on the search engine for traffic. The EU’s antitrust authority has already began a formal inquiry into the matter. Read more at Business Insider.
Chrome Was Designed To Better What Microsoft Has Been Doing For Years (Forbes)
Sundar Pichai, Vice President of all things Google Chrome opened up about the Chrome vision. The Chrome browser is a platform play; the better it is, the more time you are on it. The Chrome OS is an enterprise out of the box solution that gets better over time with central updates. Bottom line, beat Microsoft at its own game by developing platforms that developers can get rich on.
Google Dominates Mobile Ad Market Says IDC (eWeek)
Google garnered 59% of the U.S. mobile advertising market worth $877 million in 2010, while Apple was the runner-up at 8% and Millennial Media collected 7%, according to IDC. Spend on search ads led spend on display ads 56% to 44%, with Google all but putting the game out of reach from rivals Yahoo and Microsoft by collecting 91% of total search ad revenue.
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