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GOOG Down With Markets
Stocks are taking a dive this morning on down Asian markets, contracting Chinese PMI, and news about an upcoming austerity referendum in Greece. Shares of GOOG are down over 3% along with the rest of the tech tape. Catalysts include continued Android momentum in the smartphone and tablet markets worldwide; Motorola acquisition approval and integration; regaining ground in China; any signs of life for Google TV (including Motorola); the roll-out of Google Music, social network Google+ and Google Wallet; and progress in other newer initiatives (location-based services, mapping, gaming, daily deals, etc.). The stock trades at approximately 11.9x Enterprise Value / EBIT, inexpensive relative to historical trading levels.Is Google Going To Kill TV As We Know It? (The Motley Fool)
Google has committed roughly $100 million in advance payments to create new video channels, partnering with the likes of Madonna, Jay-Z, Ashton Kutcher, etc. But imagine what this means for the cable companies. Consumers who’ve long wondered whether paying upwards of $100 to $200 a month for live programming now have viable alternatives (Hulu, Netflix, Google, Apple). The disruption here is likely bigger than most of Hollywood would like to believe.
Google Rolls Out A Google TV Update On Time (Electronista)
After a long awaited refresh, Google is rolling out updates to the fresh new version of Google TV, available on devices over the “next few weeks.” The new version of Google TV is based on Android Honeycomb with access to apps from the Android Market, and you can search for content across all services like Netflix, Amazon and your cable provider. Another key new feature is the simpler user interface. With the advent of Google Channels, it will be interesting to see where this actually goes and how it will come together. Because make no mistake, Google is taking on the TV industry.
HTC Said To Be The Number One Smartphone Manufacturer In The U.S. (BGR)
While Samsung blew past Apple and Nokia in the third quarter to become the number one smartphone vendor in the world, another emerging smartphone vendor stole the top spot in the U.S. according to Canalys. The research firm believes that as HTC shipped 6.4 million smartphones in the U.S. last quarter to take the top spot. This compares to Samsung at 4.9 million and Apple at 4.6 million. Great news for Android.
Android Tablets No Where To Be Found Amongst Educators (eWeek)
Evidence of the iPad’s viability in the education market is beginning to emerge, according to Piper Jaffray’s Gene Munster. He found that all 25 technology directors in U.S. school districts he polled were testing or actually rolling out iPads for users in schools. Conversely, no respondents indicated that they are testing or deploying Android tablets. He believes that “while this may be expected due to limited availability of Android tablets early in the tablet cycle, we also see it as evidence of Apple’s first mover advantage.” There has yet to be a viable Android competitor to the iPad.
Daily Trader: Is Google Going To $800 Or Is Baidu A Better Bet? (Seeking Alpha)
Take your pick:
- Hitting $800: Many analysts have price-targets on Google of between $650 and $700 with UBS high on the street at $800. Why? 1) Overall revenue growth, 2) mobile growth fuelled by ad growth, 3) control over the mobile ecosystem with Motorola, 4) display growth and 5) international expansion.
- Baidu: As an economy at 4-5x the growth rate of the U.S., China remains one of the global growth leaders. Google continues to lose share in a market that has the fastest Internet growing population. And Baidu is growing at twice the pace with one quarter the headcount and nearly a 20% superior operating margin.