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Illustration: Ellis Hamburger
GOOG Down As Market Sinks
Stocks sharply lower after the Federal Reserve yesterday indicated that the U.S. economic slump could last for years. Thanks guys. Shares of GOOG are off 3% with the rest of the NASDAQ. 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 11.4x Enterprise Value / EBIT, inexpensive relative to historical trading levels.Google Goes Up Against The U.S. Government, We Aren’t Microsoft (InformationWeek)
Google executive chairman Eric Schmidt defended his company at a Senate hearing in Washington, D.C., yesterday, by insisting that Google is not Microsoft and that Google continues to adhere to pro-competitive principles that serve consumers. But, in terms of antitrust, Schmidt did confide that “we’re in that area.” Under U.S. law, there’s nothing necessarily illegal about having a monopoly. But once a company is officially declared a monopoly, it can’t use its monopoly to get leverage into a new business. Yelp would argue that’s what Google does.
Google+ Needs To capitalise On All Of Facebook’s Recent Changes (PC World)
Why is Facebook so hyper all of a sudden? In the last three months users have been bestowed with video chats, a new photo viewer, improved comments, and yesterday’s revamped news feed. One word: Google+. Facebook really doesn’t have to be scared. It has 750 million users and is probably the site that is most intertwined with our online lives today. Google+ can’t just stand back and watch its enemy shoot himself in the foot. It needs to capitalise on its rival’s self-defeating habits, it needs to offer a compelling vision of why new users should want be on it.
Oracle And Google Intellectual-Property Litigation Talks Break Down (The Wall Street Journal)
A second day of face-to-face talks between Google and Oracle yesterday failed to produce a settlement to intellectual-property litigation between the firms, and it was not immediately clear if negotiations would continue. A call is scheduled for today to determine “when further discussions will take place and whether the further attendance of Mr. Ellison and Mr. Page will be required,” according to a filing in U.S. District Court in San Jose, California.
Test Run Of Google Wallet Is Easy, But Will Take a while To Displace Actual Wallets (USA Today)
While there have been reports that some Sprint users haven’t been able to use Google Wallet, the tap-and-pay process is simple and easy. Google, however, must make the Wallet app available to other handsets. For the moment, Sprint’s Nexus S is the only phone capable of using the service. Of course, Google Wallet and other initiatives (Square) to turn your mobile phone into a digital billfold are in their earliest stages. People have paid with cold cash or plastic for generations. Educating the public and merchants about mobile payments will take time.
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