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GOOG Strong In Up Market
Markets are on the rise for a fourth straight session after major central banks coordinated efforts to offer liquidity into the strained European banking system. Shares of GOOG are up strong, exponentially more than the rest of technology. Catalysts include 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, Chromebooks, etc.). The stock trades at approximately 11.2x Enterprise Value / EBIT, inexpensive relative to historical trading levels.Why Did Google Buy Zagat? (TechCrunch)
Marissa Mayer, Google’s VP of maps and local, says that aside from the strong brand the company has created over the past 32 years, Zagat has a lot of great partnerships, content, and a great team behind it. “We thought there was a lot of value for our users,” she says. “Users want to know, what to expect when they’re going somewhere.” Could spell trouble for OpenTable. Zagat will remain separate from Google Places. And it’s ZaGAT, pronounced like cat.
Android Tablets Lost Market Share In Second Calendar Quarter (Various via iDygest)
According to IDC, Apple not only continues to dominate the global tablet market, its share of the market continues to grow while Android’s slips, even to the hands of RIM’s PlayBook and HP’s TouchPad. Worldwide media tablet shipments rose by 88.9% on a sequential basis and 303.8% year-over-year in the second calendar quarter of 2011. Apple took a 68.3% share in the second quarter, up about 3% from the first quarter. Android tablets slipped to 26.8% of the market from 34% in the first quarter.
Microsoft, Yahoo And AOL Team Up To Take On Google (All Things Digital)
In an effort to outsmart Google, AOL, Yahoo and Microsoft have reportedly agreed to share remnant ad inventory with each other. Can anyone say collusion? Bing now powers Yahoo search in North America and the two companies share advertising sales and revenue, but Google still brings in the lion’s share of online-ad cash. Under the plan, each of the companies will sell each other’s “Class 2 display” inventory or leftover banner ads the companies can’t sell on their own. Why doesn’t Microsoft just buy both companies?
Google Buys Patents From IBM (Bloomberg)
Google has acquired a group of 1,023 patents from IBM. Terms of the transactions were not disclosed. The transaction is the latest move in the ongoing arms race in the mobile computing business. In particular, the company would appear to be seeking ways to protect Android.
Julian Robertson And Sequoia Say Google’s A Great Investment (Seeking Alpha)
Julian Robertson is an investing legend. The Sequoia Fund isn’t too shabby either. Both like Google as an investment idea. How strong is Google’s search share? The days of someone coming up with a clever algorithm and competing against Google in search are essentially over. There’s really only one competitor out there and that’s Microsoft. And we all know what a money pit that is.
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