S&P downgrades Google stock in light of Motorola purchase

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



1. taco50

Posts: 5506; Member since: Oct 08, 2009

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

Posts: 7305; Member since: Dec 05, 2009

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

3. Fanboys Suck

Posts: 609; Member since: Dec 12, 2008

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

4. taco50

Posts: 5506; Member since: Oct 08, 2009

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

5. Sniggly

Posts: 7305; Member since: Dec 05, 2009

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

11. taco50

Posts: 5506; Member since: Oct 08, 2009

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

14. Sniggly

Posts: 7305; Member since: Dec 05, 2009

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

Posts: 7305; Member since: Dec 05, 2009

All right, here we go. Me killing you: http://www.youtube.com/watch?v=XsCBToEUm_g Enjoy your death!

32. taco5O

Posts: 5; Member since: Aug 14, 2011

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

Posts: 5; Member since: Aug 14, 2011

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

Posts: 5396; Member since: Sep 16, 2010

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

Posts: 14605; Member since: Dec 19, 2008

lol. what comes around goes around i guess.

17. TOdoubleD

Posts: 114; Member since: Mar 28, 2011

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

Posts: 5506; Member since: Oct 08, 2009

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

23. Whateverman

Posts: 3295; Member since: May 17, 2009

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

Posts: 1230; Member since: Aug 03, 2011

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

Posts: 14605; Member since: Dec 19, 2008

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

Posts: 14605; Member since: Dec 19, 2008

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

Posts: 459; Member since: Oct 13, 2009

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

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!

8. Mike unregistered

The S&P has no credibility at all.

9. PTR91 unregistered

No, they do not. S&P (sex & poop). Please someone come up with a better one then that. It's Ipoop.

10. Bratag unregistered

This is the same organization that was giving the mortgage backed funds AAA ratings all the way up to the crash. In fact have emails on record, showing that they knew the crash was coming but "hopefully we will all be rich and gone by that time". Forgive me if I don't take anything the S&P says seriously.

12. taco50

Posts: 5506; Member since: Oct 08, 2009

Nice fandroids backpedaling and proving me right. No credibility at all. Unless they say Apple is doing bad and then it's totally credible.

18. bossmt_2

Posts: 459; Member since: Oct 13, 2009

Or if it was from someone other than the ratings company who thought mortgage-backed securities were a safe bet, maybe people would believe it.

13. Tmachaveli

Posts: 425; Member since: Apr 01, 2011

Like i really believe them..this train cant be stop sorry my isheep thanks taco for putting your 2cents in.now go back in the bathroom and play with your mighty iphone....not

16. taco50

Posts: 5506; Member since: Oct 08, 2009

Of course you don't believe it. You only believe reports that are GOOD for google and BAD for Apple.

24. i-impartial unregistered

I have no brand loyalty and simply base my puchasing decisions on hardware since the iphone came to Verizon. I have owned both and see their merits and shortcomings. However I think this was a shrewd move by Google which will benefit all consumers in the long run, Apple and others. It can be used as a bargaining chip in patent litigation disputes with Apple who is afraid of Android for good reason ... this aquisition will not benefit windows mobile yet protects Android and since Windows is more of a threat to the Android market than Apple's it takes away some of the reasons for Apple to want to cripple windows mobile. In short if Windows Mobile goes kaput due to Apple patent suits which Motorola (Android) have defenses against through patent leverage, their customers are more likely to swing in the direction of Android. Similar to a strong independent showing in an election tends to hurt the Democratic side more than Republican. This should overall help the consumer by continuing to push both Apple and Google/Motorola to maximize hardware and software to compete with each other. Get used to it folks this move ensures that it will be a two party system for a long time and neither one will be going anywhere any time soon. SO FORGET THE &*%$&#@ING brand names and anylize the best product it will not always be the same ... for instance what if the bionic comes out before the next iphone it will be the better of the two ... until the next iphone comes out,

15. lubbalots unregistered

Moto successful? Huh?

19. Guest unregistered

S & P?. this isn't the same company who was part of the CDO mess that started the housing market to crash is it?; anyone know?.

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