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S&P downgrades Google stock in light of Motorola purchase

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S&P downgrades Google stock in light of Motorola purchase
Google's purchase of Motorola has been a fairly divisive decision in all areas of society: tech pundits are unsure if Google can successfully do hardware, lawyers are unsure if Motorola's patents really provide that much protection for Android, and now even the financial sector is down on the move. Standard & Poor's, the company made famous from its AAA ratings of market killing mortgage-backed securities, has downgraded its projections for Google stock.

S&P has downgraded the 12-month price target for Google stock from $700 to $500, and changed the rating from "buy" to "sell". S&P equity analyst Scott Kessler said regarding the move that the purchase of Motorola will lead to greater risk to Google and its stock. He also said that the company is not sure how well Motorola's patents will help in protecting Android, and that the purchase would "negatively impact [Google's] growth, margins and balance sheet." 

Of course, Motorola has been a successful company, and if Google follows through on promises to keep Motorola separate and run separately, these fears may be unfounded. Then again, even modest success from Motorola may lower overall growth of Google, which has been growing extremely fast. 

source: CNet

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1. taco50 posted on 16 Aug 2011, 20:04 2 19

Oh oh time to backpedal fandroids. Let me guess...

Sniggly - their numbers are wrong *cooks up own positive numbers based on wild unsubstantiated assumptions*. Also makes derogatory comments about Apple "perjuring" themselves.

Remix - android has more market share than Apple

Superevo - jumbled words with lots of all cap words and exclamation points

Remaining fandroids circle jerk and bash Apple.

2. Sniggly posted on 16 Aug 2011, 20:12 12 2

Or I could just kill you now and save everyone a lot of time and brain cells.

3. Fanboys Suck posted on 16 Aug 2011, 20:22 5 1

For as often as I disagree with you, I am 100% with you on this one. Please!

4. taco50 posted on 16 Aug 2011, 20:23 10

Are you having a nerd sci fi relapse again? Or are you having delusions you're intelligent or tough?

5. Sniggly posted on 16 Aug 2011, 20:30 8 1

Just checking how seriously you take me. You didn't disappoint.

11. taco50 posted on 16 Aug 2011, 21:39 7

Haaaaa! Says the guy who tried to get me banned from PA. Only one taking you serious is you.

14. Sniggly posted on 16 Aug 2011, 21:45 5

Who says I ever actually tried to get you banned? I only talked about it when you were at your most extreme assholishness.

You're the one who thinks I'm really threatening you.

22. Sniggly posted on 17 Aug 2011, 00:06 1 1

All right, here we go. Me killing you:

http://www.youtube.com/watch?v=XsCBToEUm_g

Enjoy your death!

32. taco5O posted on 17 Aug 2011, 11:41 1

you know I only make fun of the ones I love the most.


I'm sorry I'm so mean all the time. I dont really have any iProducts. The closest thing I have is this fake origami ipod nano that I made. I did however paint it bright pink and wear it on a string around my neck. I have a little heart on it too. And on the backside, is sniggly's original profile pic, so its close to my heart!

33. taco5O posted on 17 Aug 2011, 11:42 1

You dont want to know what I do with that full size poster of Remix's profile pic. Dirty dirty thoughts with that one.

34. protozeloz posted on 17 Aug 2011, 11:50 1

sorry man I don't approve the use of someones similar nick to mock them, did not approve it for Sigs....not gonna start now....

37. remixfa posted on 17 Aug 2011, 12:24

lol. what comes around goes around i guess.

17. TOdoubleD posted on 16 Aug 2011, 22:25 5

Backpedal for what? Taco I am convinced that you are either 12 years old or have some kind of handicap. I don't say it to be mean but no adult in their right mind would blindly support a product the way you do Apple, and spend as much time as you do, defending them on this site. And the joy that you seem to get if something negative happens to another phone manufacturer is disturbing.

Honestly I feel bad for you, that this consumes so much of your life. There's a lot more to life than your iPhone buddy. I don't think Steve Jobs himself is as passionate about Apple as you are, and he makes money by doing it. I like my iPhone too, but I couldn't care less how much money Apple has or how many phones they sell. It has no effect on my life. Anyway, just thought I'd let you know there's a whole big world out there waiting for you.

21. taco50 posted on 16 Aug 2011, 22:57 5

Read all the comments below to see fandroids in denial mode.

23. Whateverman posted on 17 Aug 2011, 00:38 2

I thought you didn't believe in commenting on articles that had noting to do with the OS you are in support of? Why are you comment on an OS that you obviously hate?

27. PeterIfromsweden posted on 17 Aug 2011, 05:45 1

Taco, if you used your brain here, you could actually come up with an good and valid argument here to make your point.
Instead of being uncivilized, you could have written something like this.
"It seems that Google will do a Apple and start making their own hardware, thus controlling both their software and hardware on Android phones. Meaning that LG, SE, HTC and Samsung will start switching to other OSes like bada, MeeGo and maybe WebOS."
You see, you can come with good arguments like this instead of your uncivilized arguments.

30. remixfa posted on 17 Aug 2011, 11:14 1

peter,
apple doesnt make anything, its all contracted out to foxconn, LG, and samsung.

Google is the only one of the big 3 (ms,google, apple) that actually owns any manufacturing equipment now. MS may be having an affair with nokia, but they arent married yet.

29. remixfa posted on 17 Aug 2011, 11:10 1

lets put your stupidity in perspective, taco.

Anything that grows company revenue increases stock price.
Anything that decreases company revenue, decreases stock price.

dropping 12 billion cash decreases revenue. Dropping it on a company that is in the red anyways severely decreases cash. Sooooo. what do u think is going to happen to the stocks?

I think this was only a suprize to taco.

6. bossmt_2 posted on 16 Aug 2011, 20:48 4

S&P has not been batting 1.000, so if I'm Google I'm liking this. It's a risk but the reward is astronomical.

7. PTR91 (unregistered) posted on 16 Aug 2011, 21:07 2

Time to buy more Google stock if it goes down, Apple stock not so much ever! For all you who make me laugh so much on all phonearena chat's thank you. Android rules!

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