Google Making Big Move, Tuesday?

The Street is buzzing with speculation that Google is about to announce something big at its headquarters on Tuesday!

According to Channelweb.com and other Internet reports Google plans to introduce a new smartphone that’s being touted as the iPhone killer.

You read that right, iPhone killer -- watch out Apple. (Well, that may be going a little far but you get the idea. There's a fight brewing.)

Called Nexus One, Google's smartphone is said to be incredibly thin and sleek – 'even a little thinner than the iPhone,' writes Engadget.com. They go on to say it's a 'pocketable phone, and feels pretty good in your hand'.

Engadget has a photo of the Nexus One on their site, and claims to have obtained the gadget already. Here are the specs, again according to Engadget.com.

Google’s Nexus One Phone Features
Android 2.1 OS
1GHz Snapdragon CPU
3.7”, 480 x 800 Display
4 GB Expandable Micro SD Card
5 MegaPixel Camera with LED Flash
Source: Engadget.Com

And what about cost?

The website Gizmodo says the phone will cost about $530 unlocked or $180 with a two-year lock-in with T-Mobile.

Is Google about to dominate the smartphone space? Or is the new gadget a money pit? For insights we turned to Citi analyst Mark Mahaney.

Mahaney thinks Nexus One is a "no lose situation for Google" because it provides another means for Google to augment mobile search.

And Mahaney is very bullish on Google for mobile search.

“Mobile search could be more valuable than desk top search within two years,” explains Mahaney. "Mobile searches have real precise locations and for advertisers that pay Google for leads -- to know exactly where that lead is – that’s extremely valuable.”

In other words, ads can be tailored that much more - making them that much more relevant and able to trigger a purchase.

Mahaney calls it a "tipping point", but does Google need their own phone to win a larger piece of the pie?

"That’s questionable," admits Mahaney. "There's risk to the strategy. But I think the risk is manageable."

What do you think? We want to know!

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Trader disclosure: On January 4th, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders;

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