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GOOG Flailing As Markets Rebound
On the heals of decent economic numbers (jobless claims, trade deficit, etc.) and ECB intervention in the ongoing European debt crisis, the markets are bouncing back after yesterday’s technical breakdown. Shares of GOOG were in the positive after the open, but are currently flailing in the red, while the rest of technology is bouncing back. 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 12.2x Enterprise Value / EBIT.
Is Google The Stock Winner In Internet? (The Motley Fool)
According to Sanford Bernstein, Amazon and Google are the two biggest winners from the “transformation of retail, media, and payments” on the Internet. At 20x earnings and 21x free cash, Google isn’t the most obvious choice for a deep value investment. Google rose to greatness through its focus on doing one thing (search) and doing that better than anyone else. Today, it could have its fingers in too many pots and its dominance in search is getting slowly but surely eroded.
E-Commerce Spending Continues To Rise Despite Crap Economy (comScore)
E-commerce spending continues to rise as more consumers look to online retail channels to purchase goods. comScore notes that online retail spending in the U.S. reached $36.3 billion for the quarter, up 13% versus year ago. This is the eighth consecutive quarter of year-over-year growth. Growth in overall spending in the quarter was due to an increase in the number of online buyers, which is up 22%. That’s good news for Google.
Google Gains Marginal Search As Yahoo Loses It (Bloomberg)
Google widened its lead over Yahoo! in the U.S. search market in October, according to comScore. Microsoft also gained. Search share for Google rose to 65.6% last month from 65.3% in September while struggling Yahoo’s share slipped to 15.2% from 15.5%. Microsoft added one-tenth of a percentage point, garnering 14.8% of the U.S. market. So basically status quo.
Siri Could Easily Be The Future Of Search (Fortune)
The question isn’t whether Siri can replace Google. It’s a different kind of search. But one that could be the future. Eric Schmidt said it: Siri, the so-called personal assistant app on Apple’s iPhone 4S, is the new face of search. Siri is threatening to sideline the search box that Google turned into the best way to navigate a rapidly sprawling web. Some say that Google should be concerned. Others label Siri a “Google killer.” In any case, the company should be very worried. But here are some Android voice control apps that could be just as good.
Google Will Help Partners In Patent Disputes, But Not Monetarily (Reuters)
Google will assist partners in defending against lawsuits surrounding the Android platform. While the company is not offering monetary support, it is sharing information, expertise, and access to patents. Chairman Eric Schmidt is on the last leg of a three-city Asian trip, meeting with hardware partners. He made his comments in Taipei while meeting with HTC, but had been in South Korea the day before visiting with representatives of Samsung and LG.
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