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GOOG Trading Sideways With Tech
Stocks are mixed as the market vacillates on the drop in jobless claims. Shares of GOOG are trading sideways with NASDAQ. 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.
Google Gunning For Android On Nokia Phones Says Andy Rubin (ComputerWorld)
Andy Rubin, vice president of Google’s mobile platforms, said that he’s hopeful that Nokia, the global mobile phone leader, will decide to adopt the Android platform. Analysts have expressed continuing concerns about Nokia’s abysmal smartphone performance in the U.S., and are hoping that the company’s recently appointed top leadership can change the downward trend. That would be a huge win for Google.
Google Dominates Mobile Search According To IDC (All Things Digital)
The mobile advertising market is ballooning, as is Google’s share of it. Of the $877 million spent on mobile advertising in the United States this year, 59% of it went to Google, according to IDC. Meanwhile, Apple claimed just 8.4% share, Yahoo 5.6% and Microsoft 4.3%. Clearly, Google rules the mobile ad market in the States in much the same way it dominates search. The mobile ad market, as defined by IDC, includes both search and display ads. The advertising business of some of the companies figuring in IDC’s report don’t extend to mobile search.
Alibaba Now Second In China Online Ad Sales, Pushing Google To Third (Bloomberg)
Google, which shut its search engine service in China this year after a censorship dispute with regulators, slipped to third place behind Alibaba in online advertising sales in the world’s biggest Internet market, according to Analysys International research firm. Alibaba accounted for 9.3% of China’s online ad sales in the third-quarter, rising from 7.8% in the prior quarter. That ranks the company behind only Baidu, after Google’s market share fell to 8.9% from 10.8%.
Money Manager Can’t Believe How Inexpensive Google Is (Forbes)
Kenneth Hackel, founder and president of CT Capital, believes Google (one of his buy list stocks), is inexpensive. Google has and continues to be able to generate massive amounts of free cash flow both from revenue growth (new products and services), acquisitions, and improvements to operations. Contrary to his take on IBM.
Google Crying Foul Play In Microsoft’s USDA Win (Reuters)
Google didn’t get the chance to formally compete for the largest federal government “cloud computing” deal yet struck, according to the search giant. Microsoft announced that the company had won the USDA contract. This adds to concerns that government agencies are unfairly favouring rival Microsoft. How the times have changed. Last decade Microsoft couldn’t get away from anti-trust scrutiny.
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