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GOOG Recovers With Market
Shares of GOOG were down in the early morning trading but are climbing up, as the market takes a breather on poor housing figures. Other catalysts include continued Android and mobile traction; the release of Chrome operating system this fall; regaining momentum in China (although there was a report out this morning from Reuters stating China had partially blocked the company’s services again); as well as progress in other newer initiatives (Google Me, gaming, social, etc.) The stock trades at approximately 14x Enterprise Value / EBIT, inexpensive relative to historical trading levels and the broader Internet group.
Verizon Building An App Store To Take On Google (Android Guys)
Verizon will release an app store to take on the Android Market (not to mention the iTunes App Store when the CDMA phone is released early next year). The company will now accept apps in their V Cast store designed to run on phones operating Android 2.2 and higher. While one can justify why it would be a good idea as not every Verizon user runs Android. It could be a developer’s nightmare in terms of what operating system they chose to develop for across all operating system options that Verizon carries. More on the story from The Wall Street Journal.
Google’s M&A Activity Highlights Its Fear Of Facebook (eWeek)
Google’s 2010 acquisitions year-to-date total the amount of acquisitions in 2007 and 2008 combined. Most being Internet companies and only 2 mobile related. The company knows that if it were to sell Android, they could get billions for it. Apple’s clearly not their concern in that market, however, the social spree highlights the real target – Facebook.
Google Isn’t Shrinking Like Search Share Stats Illustrate (The Motley Fool)
While the media and investors squawked last week on the decline in Google’s search market share (comScore), if you look at revenue, Google isn’t shrinking at all. According to Tim Beyers at The Motley Fool, if you look at the average revenue growth of the top three search, search market share doesn’t correlate with revenue growth. Google isn’t as dependent on search share because it has other products that help drive revenue. While I agree, Google has diversified business lines, search is the lion’s share. Until those new businesses actually make money, it will continue to be troublesome for the company.
Daily Trader: What’s A Cheaper Stock, Apple Or Google? (eDividendStocks)
Since the media pits Apple and Google against one another, which is completely valid given the fact that they are, which stock is cheaper? In a side-by-side comparison, here’s who comes out the winner:
- Trailing P/E: Apple
- Future P/E: Apple
- Price / Sales: Apple
- Price / Book Value: Google
- Earnings Growth: Apple
- Short Ratio: Apple
The market is currently valuing Google and Apple at near identical multiples to next year’s earnings, but Apple is expected to grow their earnings at a much faster rate. Apple definitely looks cheaper than Google right now.
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