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GOOG Bright Spot In A Down Market
Stocks are taking a dive in early trading pressured by a negative outlook from Hewlett-Packard and weak U.S. housing data. Shares of GOOG are up against the grain. Upcoming catalysts include continued Android momentum; regaining ground in China and pushing into other emerging markets; updated software, adoption and media partners for Google TV; the roll-out and label backing of Google Music; and progress in other newer initiatives (+1, location-based services, mapping, gaming, etc.). The stock trades at approximately 12x Enterprise Value / EBIT, inexpensive relative to peers and historical trading levels.
Google Sells First Debt Offering (The Wall Street Journal)
Google priced an offering of $3 billion of notes yesterday. Why? Well, the money is coming cheap and it is possible that large chunks of Google’s cash is held outside the country and unavailable for acquisitions or other domestic purposes. Microsoft recently disclosed that $42 billion of the $50 billion in cash it had at the end of the March quarter is outside the country; Apple likewise had $40 billion of its $66 billion outside the U.S. Demand was strong with orders exceeding $10 billion.
Google Estimates It fuelled $64 Billion In Economic Activity Last Year (Google)
Google announced that it fuelled $64 billion worth of economic activity in the U.S. last year, an 18% increase from a year ago. The company calculates the economic activity by estimating that for every $1 a customer spends on Google AdWords, that business receives an average of $8 in profit. That seems like a generous estimate.
Microsoft And Facebook Use Social To Try And Stay Ahead Of Google (Various via techDygest)
Keying in on relationships with your friends on Facebook, Bing has added a new set of social features to search result pages, which include more Facebook likes inside individual listings. Increasing the emphasis on recommendations shared within Facebook’s online social network is an attempt to give people something they can’t find on Google. Results to bump up links your friends like, which might otherwise have been buried deep in the search. Read more at Business Insider.
Can And Should Google Support Two Operating Systems? (CNN)
Mike Cleron, an Android engineer, made an ambitious pronouncement onstage at the company’s annual conference last week; “we want one OS that runs everywhere.” The next day at the conference, Sundar Pichai, VP in charge of Chrome, took the very same stage to stake a very similar claim, about Chrome. For the launch of Chrome OS, Google signed two manufacturers, however three dozen electronics makers already use Android. Why ask your partners to support both?