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GOOG Down With Market
Renewed Asia inflation fears as well as a possible Ireland bailout is driving the market down. Shares of GOOG also slid by about $8 midday. Upcoming catalysts include continued Android growth; the release of Chrome operating system; regaining momentum in China; as well as progress in other newer initiatives (Google Me, gaming, social, etc.). The stock trades at approximately 15x Enterprise Value / EBIT, inexpensive relative to historical trading levels and the broader Internet group.
Facebook’s Non-Email Announcement Should Terrify Google (Business Insider)
Facebook’s new messaging platform should scare the heck out of Google and Apple because it’s the latest example of Facebook pushing faster and harder than any company. According to Dan Frommer, Facebook is in attack mode with a strong team and a hunger (and a sense of self-importance) that should frighten anyone in its path. Today, it’s attacking email. Maybe tomorrow, it will be attacking Google and Apple’s core businesses, like search and mobile platforms. Look out.
Social Ads Is Also Where Facebook Will Crush Google (eWeek)
Facebook with its “like button” and other social plug-ins, has found a way of placing ads anywhere with a granularity Google can only dream of. It presents an interesting pickle for Google, vilified for even suggesting it would do behavioural tracking for users via its search engine. Google has become a victim of more paranoid times, that political pressures around online behavioural tracking years ago forced it to be conservative in behavioural tracking. It’s not inconceivable that social ads, led by Facebook, will be the dominant ads on desktop and mobile platforms.
Apple iAd Rising Tide That Lifts All Boats (eWeek)
iAd’s in-application advertising platform is boosting advertiser interest in mobile phones and other gadgets with full Web browsers. Mobile ad providers were worried Apple would upset the delicate balance of an already competitive industry by landing big fish to spend $1 million on ad campaigns. However those fears are unfounded and in fact smaller mobile ad companies are getting four times as many calls from publishers and agencies since Apple launched iAds July 1. Google should thank Apple because Android is proving to be a huge platform.
Google Launches Answer To Yelp And Foursquare (Google)
Google rolled out it’s local recommendation engine yesterday to take advantage of the buzz surrounding competitors such as Yelp and Foursquare as well as mobile commerce. The service is called Hotpot and combines Google places with your recommendations and those of your friends. Given more social ideas have been relative failures at Google, it will be interesting to see if they can gain some critical mass.
Baidu CEO Talks Smack (Mashable)
Robin Li, Baidu‘s CEO, took the stage with journalist John Battelle at Web 2.0 and spoke about Baidu’s rapid growth, Google’s recent decision to leave China and the differences between the Chinese market and the U.S. market. He says 99% of China uses Baidu’s search engine. Shares of BIDU have double since January, largely in part to Google’s exit from the mainland.