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GOOG Slipping With The Market
The major equity averages are down with narrow losses amid choppy action even though retail sales figures came in better than anticipated. Shares of GOOG are down with the rest of tech. Upcoming catalysts include transition of the executive team; continued Android momentum on smartphones and tablets; regaining ground in China and pushing into other emerging markets; updated software, adoption, software updates and media partners for Google TV; and progress in other newer initiatives (location-based services, mapping, gaming, etc.). The stock trades at approximately 15x Enterprise Value / EBIT, inexpensive relative to historical trading levels and the broader Internet group.Honeycomb Is Cool And Necessary For Google But Not A Game Changer (Reuters)
Google showcased the first version of its Android software designed to run on tablets. Analysts said “Honeycomb”, while addressing a couple perceived flaws in the operating system when used for tablets as opposed to smartphones, was unlikely to immediately shift the balance of power. “It closed the gap quite a bit,” said BGC analyst Colin Gillis. But “there was nothing there that was going to make me wait in line overnight,” referring to the lines of customers who waited outside retail stores when Apple introduced the iPad in April. Matt Rosoff at Business Insider agrees.
Google Opens Web-Based Android Market (Bloomberg)
Google opened a browser-based applications market for users of its Android software. The store will let users buy apps on a desktop computer’s browser through the Android Market and then download them to devices. The store will work on all Android devices, including tablet computers and smartphones. Steve Kovach at Business Insider walks through how to use the Android Market.
Google’s Way Of Taking On Apple? Outsource “Taste” (Forbes)
How does Google create a powerful experience everywhere, in a way people understand and accept? By creating a more open system. The solution, akin to the way Google has approached most things, go in increments, with enticing stuff. Google enlists as many outside developers as possible; what used to be called “taste.” Give them the tools, the theory runs, and they will come up with something better than you can develop at Google. While Apple restricts, Google seems to want as many outsiders as possible to put anything they want on Android
Long-Term Investors Should Take Note Of Google (The Balanced Bull)
Long-term investors should take advantage of Google’s overreaction to headline risk and add to positions. With Google’s history of growing revenue and earnings shares seem to be trading at a steep discount to growth and compared to valuations applied to other major internet companies like Amazon and even Facebook. Amazon is trading at 35x 2011 earnings and Facebook at a multiple exponentially higher than that. Conservative estimates for Google however, value it at only about 15 times 2011 earnings. Imagine 2015.
Is Google Too Late To The Check-In Game? (MediaPost)
When Google announced yesterday it was adding check-ins to Latitude, its location-based service, the first question that came to mind was “what took so long?” The service does offer new features like automated check-in and check-outs. But only about 4% of U.S. adults who go online are even using social location tools. That means there’s more room (and time) left for Google and others in the space to upgrade their offerings to gain wider adoption. As Facebook showed in social networking, being first doesn’t always mean coming out on top.
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