Is Google Enticing After Recent Headlines?

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With shares of Google (NASDAQ:GOOG) trading around $1,217, is GOOG an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

Google is a global technology company focused on improving the ways people engage with information. The business is based on the following areas: search, advertising, operating systems and platforms, and enterprise. The company generates revenue primarily by delivering online advertising. Google is a search giant with most of the market share, largely because of its execution and delivery. An increasing number of consumers and companies worldwide are coming online, which will surely increase the amount of eyes on the company’s ads and, in turn, advertising revenue. At this rate, look for Google to remain on top of the Internet world.

Google’s new investment arm is buying a minority stake in Auction.com, the largest U.S. online real estate auction firm, for $50 million. The investment by Google Capital, which expects to spend about $300 million this year to back late-stage companies, is the first in a real estate venture for the unit of the Mountain View, California-based Internet search firm. The deal values Auction.com at $1.2 billion, the Irvine, California-based company said today in a statement. “Like EBay (NASDAQ:EBAY) kind of drove transparency and created a marketplace for hard-to-find items, Auction.com is creating transparency in part of the real estate market,” David Lawee, head of Google Capital, founded last year, said in a telephone interview. “Here, you can go on to a site and see thousands of properties that are listed for sale that would be great investment opportunities.”

Auction.com, which sold $7 billion in real estate online last year, uses countdown clocks similar to those on EBay Inc.’s website to broker the sale of properties and non-performing loans. It has auctioned $26 billion of assets since 2007, diversifying from foreclosed homes sold on courthouse steps to selling luxury properties, office buildings and European real estate. The Google investment will help Auction.com expand and diversify its technology, including offering more services for mobile customers, according to Jeff Frieden, the company’s co-founder and chief executive officer.“It’s a very strategic partnership,” Frieden said in a phone interview. “It’s about a lot more than just the money.”

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