As the stock rallies ahead of Thursday’s annual meeting, could it be that Google is actually the big winner in the MicroHoo debacle?
Gene Munster, senior research analyst for Piper Jaffray, called Google the “oxygen” of the Internet. As the web continues to develop, GOOG is going to become even more its lifeblood. He still sees “considerable upside” in the stock.
For starters, the company has an unbelievably huge asset in YouTube (It is “bigger than the Super Bowl,” as Munster put it). While the company has not yet been able to monetize the video-sharing site, it reaches so many eyeballs that Munster is convinced that advertisers are eventually going to become comfortable with the platform.
But it’s Google’s search business that’s reason enough to own the stock, Munster said. With 70% domestic market share and counting, Google is the Internet. And it’s barely even dipped its toe into the real global growth opportunities, he said.
As for the now-in-shambles Microsoft -Yahoo acquisition, Munster believes it will eventually happen – and the new competition might worry Google. But even still, Google is king and Munster believes that its simple, basic core search business is still the main catalyst for this stock to go higher, MicroHoo or no MicroHoo.
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Trader disclosure: On May 7, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders: Adami Owns (C), (GS), (INTC), (MSFT), (AGU), (NUE), (BTU); Pete Najarian owns (AAPL), (C) Calls, (ENER), (MSFT) Calls, (TSO), (XLF), (YHOO) Calls; Macke Owns (INTC), (DIS0, (ATVI), (MSFT); Finerman’s Firm is Short (IYR), (IJR), (SPY), (MDY), (IWM), Owns SPX Index Puts, (AEO), (MSFT), (NYX), (PLCE), (TSO), (VLO), (YHOO) and (YHOO) Call Spreads, Finerman Owns (GS), Finerman and Finerman’s Firm Own (C)
Piper Jaffray Received Non-Investment Banking Securities-Related Compensation from (SOHU) In The Past 12 Months
Piper Jaffray Is A Market Maker In (AAPL), (ADBE), (ADSK), (BIDU), (CHKP), (GOOG), (SOHU), (VRSN), (YHOO)