This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. How good is it? See rankings and related performance below.
|Zacks Rank||Definition||Annualized Return|
Zacks Rank Education - Learn more about the Zacks Rank
Zacks Rank Home - All Zacks Rank resources in one place
Zacks Premium - The only way to get access to the Zacks Rank
Chinese Protest Over Google's Layoffs
by Zacks Equity ResearchAugust 22, 2012 | Comments : 0 Recommended this article: (0)
This page is temporarily not available. Please check later as it should be available shortly. If you have any questions, please email customer support at email@example.com or call 800-767-3771 ext. 9339.
Google’s (GOOG - Analyst Report) attempt to bring Motorola back to profitability may have suffered a setback. With 1,000 of the 4,000 job cuts to take place in China itself, employees are up in arms to prevent the action.
To recap - Google entered into a definitive agreement with Motorola Mobility Holdings on August 15, 2011. The company picked up a 100% stake for $40.0 per share in cash, or a total consideration of approximately $12.5 billion. The deal, which closed in May 2012, was intended to beef up its portfolio of mobile patents. However, given that Motorola has many problems, Google recently announced major restructuring actions.
In China, R&D personnel will be halved and Motorola offices in Nanjing and Shanghai will be closed. The fact that the uproar is more on humanitarian grounds (pregnant women being informed on the phone, Chinese workers being paid a seventh of the severance compensation typically paid to an American) could mean that there is limited legal footing for the protests. Indeed, Google representatives have stated that the requisite permission from the trade union has been received and the paper work is in order.
It is interesting to note that Google has had a tough time in China with the Chinese government practically pushing it out of the country. Google has retained a toe-hold and left its Android-powered devices to do the rest.
In the second quarter of 2012, Google did very well with its gross revenue touching a record $12.21 billion. Revenues from both Google-owned and partner sites continued to grow in double digits on a year-over-year basis.Google retains a Zacks #3 Rank, which translates to a short-term ‘Hold’ recommendation.
Please login to Zacks.com or register to post a comment.