“Google is spending aggressively on gaining traction with its Checkout product and we think the offering has the possibility of disrupting eBay’s (EBAY) off-platform PayPal business as well as the general ecommerce market,” he wrote in a research note this morning. “Google is now effectively paying all credit card fees for partners for a full year. We think Checkout is becoming Google’s Internet Explorer, if you will, and we think it is time to start paying close attention.”
Devitt says some investors might react in knee-jerk fashion and sell on the lost fees from this move, but that he would be an aggressive buyer around any short-term weakness related to the new policy. “We think, if it works, it is potentially very disruptive to the competition and materially beneficial to Google’s core Adwords business.”
Devitt maintains his Buy rating and $554 price target for Google.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment