What impact will this have on Google’s stock?
Munster is anticipating a stock decrease as Google invests more heavily in mobile. “The net effect of all this is it is probably going to have a negative 2 to 4 percent impact on 2013 earnings as they really start to ramp up that spend,” he said.
While some may argue that this is money well spent for long-term growth, Munster doubts Google’s ability to beat the competition in mobile.
“I think that market is going to be very difficult for them,” Munster said. “I understand strategically what they are trying to do, but in our opinion the best thing to do is focus on working with hardware partners like they’ve been doing.”
In addition to Apple’s smartphone and Google’s Android, Microsoft is also planning to introduce a “Windows phone” of its own.
Munster does not view Microsoft’s phone as a threat. While acknowledging that Microsoft has an advantage in the tablet market with its Office software, Munster said that it will be hard for Microsoft to change the momentum of Apple and Android in the phone market.Page 2 of 3 | Prev Page | Next Page