GOOG Down With Market Stocks are tanking today on slightly disappointing initial jobless claims released this morning, the ongoing unrest in Libya and the Middle East, downgrading of Spain, and slowdown of Chinese exports. Shares of Google are down over 1%. Upcoming catalysts include
Android momentum on smartphones and tablets; regaining ground in China and pushing into other emerging markets; updated software, adoption and media partners for
Google TV; and progress in other newer initiatives (location-based services, mapping, gaming, etc.) The stock trades at approximately
14x Enterprise Value / EBIT, inexpensive relative to historical trading levels and the broader Internet group.
Android Is The Fastest Growing Operating System Ever (IDC) Android is growing, and fast. In a recent IDC report, Android grew 1580% year-over-year in the fourth quarter 2010 in European markets moving 7.9 million units versus 470K in the prior year. Much like it has done in the United States, the Android market share moved from 4% to 31% in a year and and is considered the "fastest growing operating system ever." Looking forward, IDC calculates Android growth at a 37% compounded annually over the next five years.
Read » Apple May Have Been First, But Google May Have The Last Laugh (Fortune) The always unfiltered Jimmy Wales believes that
Apple could run into the classic mistake of completely locking down devices and only allowing software that is approved by a single vendor, sending users running to Android. He believes "it's the tortoise and the hare." And we all know how that ends. "Google is pretty relentless."
Read » Analyst Isn't A Fan Of Honeycomb (Forbes) Trip Chowdhry of Global Equities Research ripped into Google’s Honeycomb tablet software noting that it has little chance of mass adoption. If Honeycomb fails, however, Google may not pay the price “as Honeycomb is insignificant to Google revenues.” Poor
Motorola and Nvidia. Among the gripes: freezes and crashes, battery life inconsistencies, weak battery standby time, and auto-wrap of text on the tablet’s screen doesn’t work correctly. Chowdhry also says that sales are "very weak." And here comes the
iPad 2.
Read » Cramer Says To Look Beyond The Chart (Seeking Alpha) Google has an "incredibly ugly chart" which just keeps getting uglier as the bears drive the stock further down. The stock could go as low as $550, down another 40 points. Four times since January 2010, Google has tried unsuccessfully to break through its $630 ceiling, a sign of solid resistance.
Jim Cramer, however, isn't "buying the negativity." With a multiple of 14x and a growth rate of 18%, Google is "cheap as all getout." While the technicals are in control now, the long-term fundamentals for Google are good enough that Cramer predicts Google will snap back after its earnings report in the spring.
Read » Daily Trader: A Gapping Stock (TradersHuddle) Google is traded lower yesterday with the negative momentum continuing to affect the stock that failed to really participate in Tuesday's rally. Google is trading below its 50-day moving average, and it looks vulnerable for a possible test of the 200-day moving average that is currently set at the $550 to $570 area. Google was highlighted in Jim Cramer’s off the chart segment, where Jim endorsed the company from a fundamental perspective.
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