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GOOG Up As Market Takes Off
Stocks are rising sharply a day after the Federal Reserve announced its plan to stimulate the economy. Shares of GOOG are up another 1% in early trading. 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 16x Enterprise Value / EBIT, inexpensive relative to historical trading levels and the broader Internet group.
With A Billion Mobile Devices Coming, China’s Not Going To Be Able To Keep Up (The Wall Street Journal)
Google CEO Eric Schmidt believes China’s efforts to police the Internet will ultimately be unable to keep pace with the vast number of Chinese people flocking to the Web. Beijing operates a series of programs, including the so-called “Great Firewall of China,” which aims to prevent inappropriate content from entering the country, as well as vast censoring organisations. Schmidt argues that these organisations cannot monitor all Internet traffic within China and the gap would only increase as more Chinese people start accessing the Web through their mobile phones. For his sake, let’s hope so.
Android Gaining At The Expense Of RIM And Microsoft (comScore)
comScore reports that for the third quarter Android rose 6.5 percentage point to account for 21.4% of smartphone subscribers. Google’s OS still trails RIM who commands 37.3% and Apple at 24.3%. Apple’s share stayed flat while RIM and Microsoft split the brunt of Android’s carnage.
Google Docs To Allow Users To Print To Anywhere In The World (CNet)
A peek at the source code behind Google Docs offers a hint of some features that may be around the corner: “Third party applications, cloud printers, and sync devices.” Cloud printing, which lets you print to any local or shared printer without the need for a print driver, is a feature that Google has teased for a while. Beyond printing to any printer, users could share their own printers with other people around the world, similar to the way they now can share a document itself. Read more from Business Insider‘s Matt Rosoff.
Third Quarter Advertising Fared Quite Well (BusinessWeek)
Here are highlights of recent quarterly earnings reports from selected Internet, media and advertising companies and what they say about the state of spending on advertising:
- Google Inc. says its average cost per click rose 3% from a year ago while users clicked on ads 16% more than last year. Executives also indicate that display advertising accounted for nearly 10% of ad revenue in the quarter and mobile advertising was almost 4%.
- Gannett Co. reports a 37% rise in earnings helped by a jump in broadcasting revenue and an increase in advertising on the company’s websites.
- The New York Times Co. and McClatchy Co. both reported that print advertising fell and neither company was able to draw enough new business from its digital operations to make up for the losses in print.
- Yahoo said search advertising revenue fell 7% from last year. That said, the company generated slightly more revenue from each search, the first time that has happened in two years. Display advertising climbed 17%.
- IAC/InterActiveCorp, say revenue jump 25% because of growth in its search business which makes the majority of its revenue from online advertising.