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GOOG Up With Markets
Stocks are trading in the positive this morning on news that jobless claims dropped last week for the first time since April. Shares of GOOG are up over 1%. Catalysts include continued Android momentum in the smartphone and tablet markets; regaining ground in China; updated software, adoption and media partners for Google TV; the roll-out of Google Music and social network Google+; and progress in other newer initiatives (location-based services, mapping, gaming, Chromebooks, etc.). The stock trades at approximately 13x Enterprise Value / EBIT, inexpensive relative to peers and historical trading levels.Google+ Sees Decline In Traffic (PCWorld)
After weeks of explosive growth, Google+ saw traffic and usage drop last week, according to Hitwise. Google+ received 1.79 million visits, down 3% from the previous week, and the average time spent on the site fell 10%. Google+ ranked as the 42nd-most-visited social networking site and the 638th-most-visited site overall in the U.S. A drop in activity is never a good sign, especially for a site that just launched. Better start adding these features to destroy Facebook.
Google Might Want To Take A Harder Look At The Hulu Acquisition (Nielsen)
Netflix and Hulu might be the two biggest players in the streaming game, but that doesn’t mean users consume content the same way. Netflix users are opting for TVs and Hulu users are siding with computers, according to Nielsen. According to the survey, 89% of Hulu users watch directly on the computer compared to only 42% of Netflix users. Google is said to be taking the build verse buy approach to this one.
Google Continues To Be Target For Antitrust, FTC Looks Into Admeld (The New York Times)
The Justice Department has asked Google for more information and time as it investigates the $400 million acquisition of Admeld, a display advertising company. This has become common for acquisitions by Google as the Federal Trade Commission investigates possible anti-competitive behaviour.
Ex-Googler Dishes On The Search Giant (All Things D and TechCrunch via techDygest)
From 1999 until 2005, Doug Edwards was director of consumer marketing and brand management for Google. While there, the executive got a front row seat at the birth of what would become one of the most powerful tech companies in the world. And he finally decided to write it all down in his book, I’m Feeling Lucky: The Confessions of Google Employee #59. He says. “I thought Google would last maybe a year and I would get some great experience…” I don’t think it’s going anywhere anytime soon.
Daily Trader: Google Should Be Trading At $1500 (Seeking Alpha)
On CNBC’s Fast Money last night, James Altucher was very bullish on Google and gave the stock a $1,500 price target. If you back out cash, the company trades at 12x forward earnings. He believes “just on that alone the stock price should triple to something between $1,500 and $2,000. Add in the fact that Google + is taking market share from Facebook, and you could have an additional $80 billion asset in Google +.” Click here to see his full Google analysis on MarketWatch.