The Google Investor is a daily report from SAI. Sign up here to receive it by email
GOOG Up With Tech
Stocks are up after a rocky morning despite Europe closing largely in the red. Shares of GOOG are up after morning lows. Investors continue look for Android momentum on smartphones and tablets and monetization and integration of Motorola; regaining ground in China; the resurgence of Google TV; continued growth of YouTube; expansion of social network Google+; and progress in other initiatives (location-based services, mapping, Google Wallet, Google Music, etc.). The stock trades at approximately 9.9x Enterprise Value / EBIT.Google Is Evil (Wired)
Google’s history of anti-social social networks and anti-trust trust relations that deceptively breach online consumer privacy and trust has already begun to threaten its longstanding web hegemony and its vaunted brand. With the phenomenally successful and profitable Internet giant being newly scrutinized by consumers, competitors, regulators and elected officials alike, all concerned about basic issues of privacy, trust and anti-trust, the question must be raised: Is Google facing an existential threat? Given its record, and with so little accountability, how can any of us trust Google?
Google Made A Mistake Not Allying With Apple In Mobile (Daring Fireball)
Apple guru John Gruber weighs in on Siri: “Starting with the opening gag with Siri doing stand-up comedy and continuing through to Apple’s new maps and Siri’s new features, there was an unmistakable ‘F— you, Google’ undertone to the whole keynote. Apple is forcing Google out of iOS. Even the Facebook integration feels like a ‘the enemy of my enemy is my friend’ alliance. I’ve said it before and will say it again: Google made a mistake by deciding to oppose rather than ally with Apple on mobile.” Tell us how you really feel John.
Yahoo’s Search Share Loss Is Google’s Gain (Business Insider)
Yahoo has lost search market share for nine consecutive months in the U.S., according to comScore. May saw Yahoo drop another 0.1% in May to 13.4%. That’s down almost 3 full percentage points from last August. Most of those losses have been Google’s gains – its market share is up about 2 percentage points since August 2011, while Microsoft’s Bing has gained 0.7% since that time. In a research note, analyst Ben Schacter from Macquarie says that he sees “no structural bottom” to Yahoo’s decline. These stats don’t include mobile browsing, where Google is probably even more dominant. Google is also stronger outside the U.S., with the notable exception of China.
Google: A Peter Lynch Type Of Stock? (Validea)
One of Peter Lynch’s most famous phrases was “buy what you know.” And with hundreds of billions of searches a year, who doesn’t know or use Google. Lynch, however, was that he also deployed a robust quantitative approach to analysing and discovering great investment opportunities. Validea’s codification of Lynch’s strategy, gives Google an above average score on most fronts, including its earnings growth rate and its valuation. Specifically, earnings growth, combined with the price-to-earnings ratio, gives the firm a P/E/G (price-to-earnings to growth) ratio of 0.67. The company’s debt-to-equity level is only 8%, which is favourable, however Google’s free cash flow-to-price and net cash to price ratios are not at the level that Lynch would love to see.
Google Needs To Improve YouTube (Fresh Tech Web)
YouTube is an excellent tool which comes with one of the most active (and annoying) communities on the web. It has provided roughly everyone in the world with hours’ worth of procrastination and it’s the first stop almost all of us make when we’re looking for video content. However, since its acquisition by Google in 2006 we haven’t really seen many changes to the system. The only real change that has been made is the inclusion of many, many more ads. It’s hard to understand why a huge company like Google wouldn’t have brought more to the table. Profile changes, more accounts, more leniency as well as longer uploads come to mind.
Google’s European E-Book Deal Could Slow Rise Of Kindle (GigaOM)
Google announced a major deal this week with French authors and publishers that clears the way for the sale of millions of e-books that have been caught in legal limbo until now. The deal could spur digital publishing in Europe and also shape which companies gain control of the continent’s fledgling e-book market. Under the terms of the agreement, more than 600 French publishers and a major writers group will drop lawsuits over Google’s decision to scan books without permission and the publishers will begin selling digital versions of the books. The agreement does not allow the publishers to distribute the digital books through Google’s direct competitors. Read: Amazon (and Apple).
Google Updates Google Trends (Search Engine Journal)
Google launched an update of the Google Trends homepage for their Hot Searches list, along with a massive redesign of the available data that it provides in Hot Trends. The Google Trends homepage now provides a Top 10 list of Hot Searches with 3-4 trends per day. The layout is much more in sync with the recent changes to Google News and seems on par with the clean, white look of Google+. One of the bigger changes that may be the most relevant for news websites that rely on Hot Searches for coverage topics is the update from the more ambiguous “Mild-to-Volcanic” scale in determining the hotness of a topic to the much more transparent count of how many times that topic has been searched.
Business Insider Emails & Alerts
Site highlights each day to your inbox.