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GOOG Down While Market Recovers
GOOG shares are selling off today, down about 1%, as the market is climbing up. Upcoming 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 from Reuters last week 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 15x Enterprise Value / EBIT, inexpensive relative to historical trading levels and the broader Internet group.
Google Apps And Android Coming Into Their Own (AndroidGuys)
Several articles out suggesting Android is making strides with developers:
- Android Rules In The Long-Term: In a survey by Appcelerator and IDC, 2,400 developers who were polled believe Android will be the platform best positioned to “power a large number and variety of connected devices in the future”. Some other stats: 76% of developers favour iOS as being better for short term moneymaking while 19% like Android today, 56% of developers favour Android’s long-term outlook as a platform for earning money while 37% believe iOS is better poised and 88% like Apple’s App Store for the best store front whereas Android Market is preferred by 10% of developers.
- Paid Apps Coming To More Countries: Currently, users can only buy paid apps if they are located in one of 9 countries. The Android Market Team recently sent an email to developers to let them know that is changing over the next few weeks as new countries roll out.
- Amazon Bringing You An App Store? This is a stretch, but Amazon could be swinging for the fences in terms of their involvement in Android. A developer received an email from Amazon regarding an “exciting opportunity within the mobile content space” but they would have to sign and return a nondisclosure agreement to Amazon. Read more at Android Community.
Eric Schmidt Talks Smack (Various)
Here are some recent interviews with the search giant CEO:
- Bing Is What Keeps Google Up At Night (The Wall Street Journal): In an interview with the Journal’s Alan Murray, Google CEO Eric Schmidt says that Bing, Microsoft’s search engine is Google’s biggest threat. Really? Search is still Google’s primary business, so it’s not strange to say that the competitor in that area is most important, even if Bing is relatively small. And Bing has produced some innovations that Google has followed, including customised images on the home page. I would argue that Facebook search would be more daunting than Bing.
- Google Trying To Change People One Search At A Time (Business Week): Eric Schmidt sat down with Charlie Rose to talk Google and technology in general. Some interesting sound bites: He says “we’re trying to make people better people,” interesting. He is also shocked the amount of money people are willing to spend for “fake animals” in reference to Zynga’s FarmVille. He also doesn’t know Android’s market share. About China, “Chinese citizens are very clever, very creative, and the Chinese government is very, very powerful.”
The Facebook / Google Showdown: Algorithms Vs. Network (The New York Times)
Facebook and Google are both hawking information with advertising as the sidekick. Exacerbating the rivalry between the two companies is fact that much of the activity on Facebook cannot be tracked by Google, which means that as more people turn to the social networking site as their primary residence and the search engine loses something of what makes it tick. Neither one over the last few years have been lying stagnant. So who wins; the algorithmic approach of Google or the network-driven model of Facebook?
Daily Trader: A Few GOOG Opinions (Various)
Food for thought on Google stock:
- Google $2,000 (Market Watch): Google is going to $2,000 based on the explosive growth of Android and the App Market.
- Google Coming Back To Life (Seeking Alpha): The stock is still down 15% year-to-date, but it has rallied over 70 points this month. The stock just closed above its 200-day moving average today, so it is now back above its short and long-term moving average, which is a positive from technically.
- Android On Various Carries Will Kill Apple And AT&T (The Street): Contributor Don Reisinger says investors should pick GOOG over AAPL every time. Apple and Verizon are worlds apart from bringing the iPhone to the largest carrier. That’s why Google is a better target, because they are willing to diversify carriers to reach the masses.
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