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GOOG Up As Market Rises
With Occupy Wall Street trying to take over the world, the market is rebounding as April ISM blows past expectations despite disappointing construction spending figures. Shares of GOOG are up from morning lows. Investors continue look for Android momentum on smartphones and tablets and actually monetizing that operating system; clarity on the Motorola acquisition; 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 10.9x Enterprise Value / EBIT.
Google Slapped With Lawsuit For Weird Stock Split Plan (CNet)
Shareholder Brockton Retirement Board filed a class action lawsuit in an attempt to block Google’s stock split plan on the grounds that it gives Google the co-founders too much power. The suit alleges that Larry Page and Sergey Brin “wish to retain this power, while selling off large amounts of their stock holdings, and reaping billions of dollars in proceeds.” As part of the split (or “non-voting capital stock plan”), the company plans to issue a new class of stock that won’t carry voting rights. The overall effect will be to ensure that Google’s existing shareholders retain their current voting power.
The Oracle Vs. Google Trial Goes To Jury (Reuters)
Jurors began deliberating yesterday in the Oracle vs. Google copyright trial. Oracle attorney Michael Jacobs said the parts of Java software that Google copied took much creative talent to compose. “It’s kind of like creating a symphony,” Jacobs said during his closing argument. But Google attorney Robert Van Nest said Sun’s leadership had supported Android, and that Oracle decided against pursuing a smartphone of its own. “It isn’t until after they failed that they brought this lawsuit here,” Van Nest said.
Google Going To Paid Inclusion Program For Ads (Search Engine Land)
Google’s “comparison ads” are getting a new look in the search results. Google hopes the change will better explain to searchers that comparison listings come from companies with which it has a commercial relationship. It also highlights how three Google search products now seem to largely operate on a paid inclusion basis. Google was once a vocal opponent to paid inclusion programs. The paid listings aren’t in its main search engine results (at least not yet). But it’s another example of how Google is putting into action its new philosophy that “ads are just more answers,” as it stated in its last annual report.
Should Google Be Included In The Dow Jones Industrial Average? (Barron’s)
The Dow Jones Industrial Average is overdue for a makeover. The world’s most famous stock index hasn’t adjusted its component companies since 2009, during which time Apple has emerged as the world’s most valuable company, with a market value of $570 billion. Also conspicuous by its absence from this elite list is Google, the online advertising-and-search behemoth. Google, it is planning a stock split that would cut its share price in half, to about $300. But even at that level, it would have a hefty 15% weighting in the average.
Google’s Search Share Grows In Russia (Bloomberg)
Yandex, Russia’s most popular Internet search engine, saw its weekly share of the Internet search market fall for a second week, while Google share rose, according to Liveinternet. Yandex’s share of the Russian online search market fell to 60% last week while Google’s share rose to 26.3%, the highest since the beginning of the year. Google’s monthly average remains around 25.9%.