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GOOG Up As Market Continues Its Flight
Markets are on the rise again. The S&P 500 has gained more than 3% in its best three-day run in three months (nearing a technical breakout) as the Greek parliament adopted austerity measures to avoid a debt default. Shares of GOOG are up over 1% in early trading. 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 (social networking, location-based services, mapping, gaming, Chromebooks, etc.). The stock trades at approximately 11x Enterprise Value / EBIT, inexpensive relative to peers and historical trading levels.
The Search Giant Takes Yet Another Stab At Social (Various via techDygest)
Google, frustrated by a string of failed attempts to crack social networking, is taking another stab at fending off Facebook with the new service Google Plus. Google designed the service to tie together all of its online properties, laying the foundation for a full-fledged social network by basically turns the all of the search engine into one giant social network. Once users sign up, it shows up across all Google sites. Steve Kovach at Business Insider believes that Google Plus won’t work in the long-run.
Office 365 Could Give Google A Run For Its Money (PC World)
For the launch of its first full-fledged online office suite, Office 365, Microsoft is paying particular attention to small and medium-size businesses. Office 365 combines access to Exchange e-mail, Lync messaging, SharePoint collaboration, the Office Web Apps, all into one monthly subscription. With new collaboration tools like Lync and SharePoint Online, and Web-based versions of staples like Word, Excel, and PowerPoint, Office 365 should give Google a run in this market.
Google Seeing 500K Android Devices Activated Every Day (Various via techDygest)
Half a million Android devices are activated every day, a number that’s growing 4.4% each week, Google’s Android chief Andy Rubin revealed in a tweet. That means that Android could hit 1 million daily activations by October if this growth rate maintains. Henry Blodget at Business Insider says this leaves Apple in the dust. Back in January, Apple announced (in a roundabout way) over 360,000 daily iOS activations, and at that time Google was seeing 300,000 activations. Getting to $14 billion in mobile ad revenue in the next 4 years doesn’t seem so far-fetched.
Where Netflix Lags, YouTube Can Dominate (CNet)
Greg Sandoval at CNet, having overdosed recently on the supply of documentaries and foreign films at Netflix streaming, was looking for something more action-packed. So he went to YouTube’s relatively new and much-ignored movie rental service, where the streaming shelves overflowed with full-length titles that were a couple of grades higher than the dregs found at Netflix. Sure, the cost of the movie was equivalent to 30% of his monthly Netflix fee, but what it came down to was that Netflix didn’t have what he wanted.
Oracle Seeking About As Much As Android’s Made For Google In Damages Plus 15% (PC World)
An Oracle damages expert estimates that Google owes the company $2.6 billion for alleged Java patent violations. That figure falls in between the “breathtaking” $1.4 billion and $6.1 billion range Google previously cited. Oracle is also seeking 15% of the revenue Google receives from advertising on its mobile operating system.
Google May Launch Ice Cream Sandwich With Several Hardware Partners (mocoNews)
A few months ago, several Android partners raised quite a stir complaining about Google’s practice of picking a single vendor as the primary launch partner for a new generation of technology. The company may be preparing to launch Ice Cream Sandwich (the next version of Android) with multiple partners (Samsung, Motorola and perhaps others). It would allow all the major vendors to have new products going into the all-important holiday shopping season, rather than just one lucky company.