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GOOG Up With The Market
Stocks are rising in early trading as expectations grow that a solution will be found for Greece. Shares of GOOG are up 1.5% as the stock trades below the $500 mark. Upcoming catalysts include second calendar quarter results released in July; 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 progress in other newer initiatives (+1, location-based services, mapping, gaming, Chromebooks, etc.). The stock trades at approximately 11x Enterprise Value / EBIT, inexpensive relative to peers and historical trading levels.eMarketer Releases Display And Search Numbers: Google Holds Its Own (eMarketer)
Remember the days when marketers wanted nothing to do with social media? Those days are long gone. Facebook will surpass Yahoo this year in total display ad revenue for the U.S. market, according to eMarketer. Google will remain the third-largest seller of display ads, with over $1 billion in display revenue. In terms of search, Google is predicted to open up an even bigger lead despite Bing’s gains among consumers.
More Money Being Poured Into The Cloud, Good News For Google (IDC)
IDC forecasts that public IT cloud spending will reach $72.9 billion in four years, up from $21.5 billion last year. That works out to 27.6% compound annual growth rate (CAGR). According to recent surveys, 80% – 90% of all companies will have some aspect of their infrastructure based in the cloud by 2016.
Smartphone Users Now Spend More Time On Apps Than Desktops (Flurry)
Double-edged sword for Google. Mobile app analytics firm Flurry released a report that indicates U.S. smartphone users now spend more time with mobile applications per day than people do using the desktop and mobile Web. Consumers are spending 81 minutes per day using mobile apps, compared to 74 minutes of web surfing. This growth in mobile app usage clocks in at a 91% increase year-over-year and has come primarily from more sessions per user per day as opposed to growth in average session length.
Google Acquires DVR Company To Enhance Google TV (GigaOM)
Google acquired nine-year-old DVR software company SageTV, in a move apparently designed to enhance its Google TV products. SageTV makes home theatre software with streaming and media centre-type services for PCs (HTPC). The acquisition has to be more than just for DVR capability. The company’s place shifting software makes it possible to watch live and archived TV programming on computers either in your home network or remotely. Something developers have already been able to do with iOS. Expect the Android client soon.
Google Disputes Billion Dollar Java Lawsuit (PCWorld)
Google may owe Oracle nearly as much money in damages as Oracle paid to buy all of Sun Microsystems, but “Oracle’s methodology for calculating damages is based on fundamental legal errors and improperly inflates their estimates,” Google disputes. But the true scope is now apparent: Oracle statements say the company is seeking a figure “in the billions of dollars”. Google has motioned to have the case filed “under seal,” a move likely designed to protect both confidential information and shareholder confidence.
Android Will Continue To Lose Smartphone Share Gains (Electronista)
The smartphone market is continuing to grow, and Apple is well-poised to continue stealing share from its rivals; including Google. According to Needham and Company technology analyst Charlie Wolf, Android had 36.2% of worldwide smartphone market share in March, but its month-to-month gain was just 3-percentage points, down from a 7.5-percentage-point gain in the December quarter, and a 9.5-percentage-point gain in the September quarter. He predicts that Android’s recent decline will continue to fall as Apple introduces its new iPhone this fall.
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