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GOOG Maintaining In A Recovering Market
The market was selling off after durable goods orders drop the most in three years and housing prices fall, missing expectations this morning. But stock are currently recovering led by the strong shares of banks as the consumer confidence improves. Shares of GOOG are up with the rest of tech. Investors continue look for Android momentum in the smartphone and tablet markets worldwide; Motorola acquisition integration; regaining ground in China; resurgence of Google TV;and continued growth of YouTube; expansion of social network Google+; and progress in other newer initiatives (location-based services, mapping, gaming, daily deals, Google Wallet, Google Music, etc.). The stock trades at approximately 11.9x Enterprise Value / EBIT.Google-Branded Tablet Could Be On Its Way (CNet)
According to DisplaySearch analyst Richard Shim, Google may soon be jumping into the tablet market. The Google-branded tablet will have a 1280×800 resolution 7-inch display with production slated for April. The initial production run is between 1.5 million to 2 million units. Shim said it is not clear how Google will market the device. Whatever the case, after Google completes the planned acquisition of Motorola, it will instantly gain ownership of three tablets.
Andy Rubin Ready To Take On The iPad (The Guardian)
Andy Rubin, the head of Google’s Mobile and Digital Content division, announced that Google is now activating 850,000 Android devices daily, with 300 million total activations. Rubin said that there had been 12 million tablets running Android activated so far, a figure he called “not insignificant, but less than I’d expect it to be if you really want to win.” The numbers do not include the millions devices using “forked” versions of the software. Rubin also said that Google isn’t going to favour Motorola over any other Android reseller, which Matt Rosoff at Business Insider calls a bunch of bologna.
Some Predictions Post Motorola Deal (Seeking Alpha)
On the heels of the Motorola deal emerge some predictions on how the deal could turn into a major success for Google:
- Android: Until now Android has played a largely defensive role in Google’s strategy. But growth of the mobile platform made the acquisition that much easier as an established presence. A lot of opponents to the deal have pointed out that the OEM business isn’t all that it’s cracked up to be. That said, if you look at two biggest Android OEMs the picture doesn’t look too bad. Meaning Google’s potential revenue and profit growth in this space is vast.
- YouTube: YouTube currently occupies the top spot in Google’s growing media empire. And Google has the undeniable drive to take part in every part of the this food chain: content creation, delivery to being a service provider. The Motorola acquisition has the ability to tie a lot of the disparate services into one nice, neat package.
The Motorola acquisition, in this perspective, ensures long-term sustainable growth. Henry Blodget at Business Insider would disagree, calling Motorola a “dead elephant.”
Google Is Straying From ‘Core Principals’ (Business Insider)
Google does a lot more than one thing. It’s fighting big, powerful competitors on three major fronts: Microsoft in search, Facebook in social, and Apple in mobile. Google is also building self-driving cars and computer-powered glasses. If Google over-extends itself too much, look out. The biggest threat right now is Google’s merger with Motorola, which might compress Google’s magical margins by adding a costs-heavy loser in the gadget-making industry. If that goes poorly, or the fight with Facebook ends in a loss, or if Bing takes big strides in search marketshare, the company will end up where Microsoft is today.
Google + Is A Wasteland (Business Insider)
Google+ may have 90 million registered users, but they’re not spending much time at the site. Anecdotally, it seems that Google+ is used a lot by Googlers, plus a few celebrities and bloggers, but not by normal people. According to comScore (as reported by the WSJ), users with personal computers spent an average of 3 minutes per month on Google+ over the last six months. That’s compared with 7 hours a month on Facebook, almost 90 minutes on Tumblr, and 17 minutes on LinkedIn.
Google Takes A Hit On Clearwire Stake (VentureBeat)
Google is preparing to sell off its entire stake in WiMAX wireless network Clearwire, according to SEC documents filed by the search giant today. Google originally purchased a 6.5% stake in the company back in 2008 for $500 million. The initial appeal of Clearwire was its faster 4G WiMAX wireless network, which has since fallen behind the new wireless carrier standard of LTE. The documents state that Google is seeking to get $1.60 per share for a total of $47 million, less than one-tenth the price originally paid.
Online Shopping Hit $200 Billion Last Year, Still Only 7% Of Total Retail Sales (WSJ)
Americans spent more than $200 billion on online shopping in 2011 and are expected to shell out $327 billion on Internet stores by 2016, according to Forrester Research. Analyst Sucharita Mulpuru also predicts that online sales will make up almost 9% of overall retail sales by 2016, up from 7% today. Driving much of that growth are new web-shopping converts and current online shoppers spending more. A majority of the U.S. population, 53%, bought something online in 2011. That figure should grow to 58% by 2016.
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