GOOG (NASDAQ:GOOG) Off With Tech
Stocks are choppy today as S&P looks to downgrade the euro rescue fund. The only silver lining could be that the threat will actually motivate EU leaders to get a deal done this week. Shares of GOOG have sunk after early morning gains. Catalysts include continued Android momentum in the smartphone and tablet markets worldwide; Motorolaacquisition approval and integration; regaining ground in China; any signs of life for Google TV (including Motorola); the roll-out of Google Music, social network Google+ and Google Wallet; and progress in other newer initiatives (location-based services, mapping, gaming, daily deals, etc.). The stock trades at approximately 12.8x Enterprise Value / EBIT.
No Google Wallet For Verizon Customers (VentureBeat)
Verizon (NYSE:VZ) wants to mobile identity, which may be why the company has blocked the Google Wallet mobile payments app on the forthcoming Samsung Galaxy Nexus smartphone. Verizon is instead banking on the Isis mobile payments platform, which was jointly developed by Verizon, AT&T and T-Mobile. It shows one of the big flaws in Google’s plan for Wallet: for it to work, Google not only needs handset makers to ship NFC chips, but also needs to make sure carriers are wiling to support it.
The EU Is About To Drop The Hammer On Google (dealReporter via Financial Times)
The European Union will serve Google with a 400-page Statement of Objections in its antitrust investigation early next year. That’s the next step in a legal action. If Google doesn’t settle, the EU can fine the company up to 10% of its revenues until the violations are fixed or Google wins on appeal. Google Chairman Eric Schmidt is reportedly flying to Brussels for a “courtesy meeting” with the head of the European Commission next week.
Google Taking On Amazon Prime In Delivery (The Wall Street Journal)
Google is talking to major retailers like Macy’s, the Gap and OfficeMax to offer customers one-day shipping when they buy products after finding them through Google searches. It sounds a lot like Amazon Prime. Matt Rosoff at Business Insider says that e-commerce fulfillment is a pretty big step removed from Google’s core mission of organizing the world’s information. Lack of focus has been a problem for the company, and CEO Larry Page has killed a lot of non-core products this year.
Mobile Usage On YouTube Is Exploding (Business Insider)
At the beginning of this year, YouTube had more than 200 million views on mobile devices per day. Now, it’s more than 400 million. That’s more than 10% of the total views on the site, which amount to more than 3 billion. The recent focus on channels rather than individual videos will be coming to mobile platforms soon. One obvious scenario would be to let users “pin” individual channels to the home screen of Android phones and tablets. Rather than opening the app, they could go straight to the channel they want to watch.
Dell Discontinues Android-Based Tablet Streak Line (TechCrunch)
Dell (NASDAQ:DELL) just killed its last Android tablet Streak 7 dead. This comes four months after having killed off the Streak 5. If this is indeed Dell’s last Android tablet, the event will be just a blip on Android’s story line. Dell has never been a major player in the field and probably for good reason. That said, Android tablets haven’t managed to break into the mainstream despite major efforts from Samsung, Motorola, LG, Asus, Acer and Toshiba.
Daily Trader: Jim Cramer Is Back On The Google Boat (Wall St. Cheat Sheet)
Stock personality Jim Cramer made his December 5th stock picks last night and guess who’s on the Buy list? That’s right, Google. After having climbed up from its 52-week low of around $473 to just under its 52-week high of around $642. He also likes KKR, Baidu, Cypress Semiconductor, Fluor Corporation and MasterCard.
Heather Leonard is the Google analyst at Business Insider.