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GOOG Diving In Mixed Market
Major indices this morning are fluctuating between the red and black and shares of GOOG dove in the negative after being up solid $2-$3 in morning 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.
Facebook Could Buy RockMelt And Destroy Google (eWeek)
RockMelt is a browser technology that hooks into Facebook Platform to let users browse content online, integrate RSS feeds and share it with their Facebook friends and tweet to Twitter. Anything anyone wants to do, to read or share content can be done in RockMelt without forcing users to open up multiple browser. So, doing all that without ever leaving Facebook. If Facebook were to buy RockMelt, it could theoretically swap out Google for Bing as the default search and create a huge dent in Google’s business.
Google To Continue Buying Spree (Bloomberg)
Google plans to push ahead with more acquisitions, helping maintain a takeover spree that’s boosted the value of U.S. technology mergers to more than $60 billion this year. The search giant is likely to buy more companies about the size of YouTube and DoubleClick, to help offer more online services, the company’s head of mergers and acquisitions said in an interview last week.
Nexus Two Delayed (TechCrunch)
The phone that doesn’t exist, Google’s collaboration with Samsung, “Nexus Two,” is being pushed back due to “a serious hardware issue” found during the testing phase of the phone. Originally expected to debut with the unveiling of Gingerbread (Android 2.3), it is now unknown when the phone will arrive.
Another App Store, This One From HTC (Financial Times)
Not surprising, but HTC has joined the growing list of companies throwing their hat in the app distribution game. The handset maker is prepping an online store of their own, which will offer apps and e-books. HTC has been slowly moving beyond being merely a company who builds phones.
Confidential Advisor Leaves Google (Fortune)
Fortune got Bill Campbell, or the “secret coach,” kicked out of Google. An article which ran exposing his close ties with Apple and Google forced the issue. Campbell still sits on Apple’s board. It was his unique relationship with Google, the only outsider who sat in on board meetings, that had to change. He contends, “There is nothing I would do for either company that would jeopardize one or the other, but that’s not the point.” No, actually, the point is there is a clear appearance of a conflict of interest.