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GOOG Higher With Tech
Stocks opened sharply higher as crude oil prices fell and jobless claims dropped to their lowest level in more than 2 and 1/2 years. Shares of GOOG are up strong with tech. Upcoming catalysts include Android momentum on smartphones and tablets; regaining ground in China and pushing into other emerging markets; updated software, adoption and media partners for Google TV; and progress in other newer initiatives (location-based services, mapping, gaming, etc.). The stock trades at approximately 15x Enterprise Value / EBIT, inexpensive relative to historical trading levels and the broader Internet group.Google’s Share Of Total Online U.S. Advertising Market Still Growing (eMarketer)
eMarketer released search estimates:
- Search: Despite rapid gains by Bing, Google’s share of the $13.6 billion U.S. search advertising market will continue to grow in 2011 reaching over $10.2 billion in revenue or 75%. This is up from 71.4% or $8.8 billion last year.
- Display: Google’s role in the $10.1 billion U.S. display market continues to grow stronger with estimated revenue of nearly $1.3 billion in 2011, or 12.6%. This is up from 9.6% or $855 million last year. Facebook is projected to dethrone Yahoo! this year, with 21.6% market share.
- Overall: Despite gains by Facebook and Microsoft, Google’s share of the $28.5 billion U.S. online advertising market is still growing. Google is estimated to earn $12.4 billion in net U.S. online ad revenues, pushing its share of the overall market to 43.5%, up from 38.9% last year.
Android Market Coming To Google TV In The Very Near Term (Gear Live)
A version of the Android Market for the Google TV platform is due “very short term,” says Ashish Arora, the general manager overseeing Google TV products for Logitech speaking at the OTTCon. He was specifically asked on a panel discussion whether Google TV owners would be able to take advantage of other Android apps soon. Arora answered in the affirmative, although his answers didn’t quite nail down the time frame.
Google Moves South Of The Equator To Take Advantage Of Growth (Bloomberg)
Google is opening new offices in Latin America and boosting staffing levels by 50% to capitalise on its fastest-growing region. Revenue from Latin America surged 80% last year, outpacing every other market, Vice President Dennis Woodside said in an interview at the company’s Buenos Aires office. Google, which has about 500 people in the region, has opened branches in Santiago, Lima and Bogota
Google Should Start Charging For Android (Seeking Alpha)
What’s the business model of a free operating system like Android and how much does it cost to maintain through the massive competition? There is obviously room for both Android and iOS’s and it’s clear that Android is more than just a phenomena. It’s a legitimate OS and Honeycomb should bring it further up the food chain. But the key to the Google profit machine is search. And the key to Google’s future is mobile search. So perhaps it’s time Google start charging to get better control over the ecosystem and apps.
Google Purchases App Security Firm Zynamics (eWeek)
Google has acquired security firm Zynamics for its software analysis tools. The company builds reverse-engineering tools for offensive and defensive security that help find vulnerabilities within applications. Per usual, Google offered little information about how the Zynamics technology will be used. Most likely big brother for Android Market so they don’t have to pull malware-infected apps again.