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Google reported better-than-expected earnings on Thursday.
“We were bracing for the worst and we didn’t get it,” Gene Munster, senior analyst at Piper Jaffray, told CNBC’s “Squawk Box.” This signaled continued strength in advertising, which sent Google shares up in extended-hours trading. But the Internet giant left one question unanswered: What is Google’s plan for Motorola?
“We’re looking for some parameters in terms of how much they [Google] are going to invest in Motorola,” Munster said. He explained that this is an important question for investors because Motorola is a big company that hires nearly two times as many employees as Google.
After speaking with people close to the company, Munster said that Google will likely start investing aggressively in Motorola in 2013. As a result, this will lead to “a pare back in the number of phones they have,” Munster explained. But in cutting down the number of phones, Google will adopt a similar strategy to Apple.
“They are going to be investing aggressively in the phones that they keep,” Munster said. “They are going to try to replicate what Apple is doing.” Piper Jaffray recently reported that it expects Google to start investing on the product side of Motorola and then move into marketing to support new device launches.
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