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GOOG Ending Sept On A High Note
Stocks are ending September on the up after new reports on unemployment claims and GDP topped expectations. Shares of GOOG are up about a half a per cent in early trading. 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 Should Buy Twitter Now Before It Gets Crushed By Facebook (The New York Times)
Dave McClure (Silicon Valley tech entrepreneur, startup investor and blogger) has some advice for Google: buy Twitter if you want to stay competitive against Facebook. Mr. McClure isn’t alone, Henry Blodget at Business Insider would undoubtedly agree. Google has struggled to create a major presence in social networking, where consumers are spending increasing amounts of time on Twitter, Facebook and LinkedIn. “Is there a scenario where you think you don’t have to buy Twitter in the near future? I don’t see it. Whatever your maths is, you’d better do it soon, because you’re getting killed by Facebook,” he warned.
Facebook COO Says Not Building Ad Network (Fortune)
Sheryl Sandberg, Facebook COO and former Google vice president of Global Online Sales & Operations was asked whether Facebook Connect would be turning into an ad network allowing sites that use Facebook to monetise the social information they have on users to show targeted ads. As Google knows what you’ve been searching for and makes money of that information in AdSense, Facebook knows what your friends like. This information might be as valuable, if not more valuable than what Google currently has. But Sandberg said the company isn’t working on an ad network, “we have a lot of ads to sell already.” That doesn’t mean that they can’t monetise that personal information to sell ads throughout the web on affiliate sites.
Google’s Fight In China Making Some Headway (The Wall Street Journal)
More than six months after Google announced that it would stop censoring its content in China, it’s still hard to say whether the move did more to help or hurt free access of information within the country. Access is now inconsistent and unstable, with the company’s Chinese site being occasionally blocked. Ross LaJeunesse, Google’s head of government affairs in Asia, says the company continues to push for more freedom in China as part of its government relations strategy. Chinese are now fighting back against censorship. Chinese opposition forced the government to stop funding the monitoring initiative in this summer.
Google To Tell Us Things We Want To Know Without Typing (The Wall Street Journal)
“Think of it as a serendipity engine,” says Eric Schmidt, Google CEO, at appearances all over the place. Appearing onstage at the TechCrunch Disrupt conference, he said the combination of cloud computing and powerful mobile phones will enable Google to tell people things they may want to know as they are walking down the street, without having to type in any search queries. Isn’t that what Foursquare, Shopkick and a whole host of companies are already doing? He predicted that this would be one of many “new services that make your life just work.”