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GOOG Down With Markets
Markets are selling off again despite a better than anticipated jobless claims report. Shares of GOOG are off with the rest of tech. Investors continue to look for Android momentum in the smartphone and tablet markets worldwide; Motorola acquisition approval and integration; regaining ground in China; resurgence of Google TV and continued growth of YouTube; expansion of social network Google+; and progress in other newer initiatives (location-based services, mapping, gaming, daily deals, Google Wallet, Google Music, etc.). The stock trades at approximately 11.9x Enterprise Value / EBIT.Google To Surpass Facebook In Display Advertising Next Year (eMarketer)
Google’s display-advertising business is growing faster than anticipated and is on track to surpass that of Facebook next year, according to eMarketer. Facebook’s U.S. display-ad revenue should reach an estimated $2.58 billion this year, and is on track to reach $3.29 billion next year. Google is estimated to generate $2.54 billion in U.S. display-advertising revenue this year, and $3.68 billion next year. Google’s display-ad growth is coming primarily from mobile usage and YouTube.
Google’s Terminator Glasses Said To Be Available Later This Year (The New York Times)
Google-made glasses that include a small screen sitting a few inches from the eye that will be able to stream information in real time will be available at the end of this year. The glasses will be Android-based, have a 3G or 4G data connection and a number of sensors including motion and GPS. A low-resolution built-in camera will be able to monitor the world and overlay information about locations, surrounding buildings and friends who might be nearby. I don’t know. Would you buy display glasses like this?
Google’s Glasses Will Bring Virtual Advertising (Forbes)
As a technology, the screen only works if you’re looking at it. For an advertiser, that’s not good enough. If you’re out walking around, the screen on your desk isn’t doing anything. The one on your phone in your pocked or purse is a little better. That’s why the new glasses Google plans to begin selling by the end of the year are so promising. One can be sure advertising will eventually enter into the picture, literally. And when it does, it will most assuredly be in the form of augmented reality.
Google Could Be A Loser In Obama’s Tax Reform (Reuters)
Companies with major international components, specifically valuable intellectual property and other intangible assets, are likely to lose under Obama’s proposed a plan to revamp the U.S. corporate tax system. Current tax rules let companies shift assets abroad to trim taxes paid. Google takes advantage of tax havens like the Netherlands and Puerto Rico to locate divisions and assets, which suggests they could be hit by the proposed minimum tax on foreign profits.
Google To Launch TV Service This Year (Business Insider)
Google has sought approval from the FCC to launch a video service over the fibre network it’s building out in Kansas City, and the service could launch in the next two months. This echoes a report from last year that Google would deliver pay TV, not just super-fast Internet access, over the Google fibre network. The service would compete directly against cable TV providers, and would probably be similar to other IPTV services from phone companies like AT&T (U-Verse) and Verizon (FiOS).
Microsoft Files EU Antitrust Complaint Against The Google / Motorola Deal (FOSS Patents)
First Apple, now Microsoft is waiving the antitrust flag as well, claiming that a Google / Motorola combination would reportedly abuse Microsoft’s standard-essential patents, impede fair access to patents that are fundamental to regular device function. More specifically, “Motorola is attempting to block sales of Windows PCs, our Xbox game console and other products.” Microsoft claims that Motorola is also demanding an impossibly high royalty fee per laptop. There is some irony in Microsoft’s charge, as Microsoft allegedly asks for some pretty hefty licensing fees from Android resellers.