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GOOG Down As Market Wanes
Stocks are sideways in early trading Tuesday as investors await the results of a key vote by Slovakia on expanding the euro zone rescue fund. Click here for LIVE COVERAGE. Shares of GOOG are off as investors grow weary of earnings (see below). Catalysts include third quarter earnings announcement Thursday, October 13, 2011 at 4:30 p.m. ET; continued Android momentum in the smartphone and tablet markets worldwide; Motorola acquisition approval and integration; regaining ground in China in search and pushing forward in mobile; any signs of life for Google TV (including Motorola); the roll-out of Google Music and social network Google+; and progress in other newer initiatives (location-based services, mapping, gaming, daily deals, etc.). The stock trades at approximately 11.3x Enterprise Value / EBIT, inexpensive relative to historical trading levels.Google Earnings Will Be Proxy For Industry (Forbes)
Google third-quarter earnings report will provide insights into how well online advertising is holding up amid recent signs that the economy may be limping toward another recession. The report is due out after the stock market closes Thursday. Revenue growth and expense control typically are the two biggest keys for investors. The average analyst forecast calls for Google’s revenue to increase by 30% from a year ago, slightly below gains seen in the second quarter at 32% annual growth. Google’s free-spending ways are also a hot-button subject for Wall Street.
Google’s Search Share Increases In September At Yahoo’s Expense (Bloomberg)
Google increased its U.S. market share to 65.3% in September, up from 64.8 per cent in August, as Yahoo dropped to less than 16.3%, according to comScore. Microsoft was unchanged at 14.7% giving them a combined share of 31%. Microsoft and Yahoo have struggled to erode Google’s leadership, even after joining forces in the search market last year.
Yahoo Out, Google Still In For Hulu (The Wall Street Journal)
The auction of online video website Hulu is chugging along, with financial advisers working to compare the various offers for the company after last week’s latest bidding deadline. Dish Network, Amazon and Google remain in the mix but have all proposed different arrangements. Yahoo, which made the initial approach to Hulu that kicked off a full sale process, has withdrawn from the process as Jerry Yang mulls over taking the company private. Google needs Hulu to compete with Amazon and Netflix and complement YouTube and potentially take Google TV somewhere.
YouTube Launches Movies On Demand In The UK (TechCrunch)
YouTube launched its movie rental service in the UK with thousands of blockbusters. Google’s video arm has been expanding its movie rental offerings over the past year to better compete with the likes of Netflix and iTunes. The company has also reportedly put up $100 million for original YouTube content to capitalise on a new generation of cable TV cord cutters looking for content online.
Google’s Dart Could Make Web Apps Shine (GigaOM)