If you're feeling good about the market, you're not alone. Take my hand as we go over some of this week's more uplifting headlines.
1. Big G calls it in
Google (NASDAQ:GOOG) is buying AdMob in a $750 million stock deal. It's a smart move, giving Google a leg up in the booming mobile advertising market.
However, what I really like about this is the search engine's commitment to repurchase $750 million in stock, offseting any potential shareholder dilution.
It's no skin off Google's back. The company has $22 billion in the bank. It also eases concerns that Google went with a stock deal because it felt that its stock may be overvalued. Maybe AdMob is the one that demanded the stock. Maybe Google wanted AdMob execs motivated as shareholders instead of lottery winners. Either way, Google is able to snap up a motivated AdMob team that ultimately puts its lifeless greenbacks into action.
2. Don't get mad, get satrad
Satellite radio's signal keeps getting stronger. Standard & Poor's is revising its outlook on the debt of Sirius XM Radio (NASDAQ:SIRI) -- from "stable" to "positive" -- a week after the media giant's breakthrough third-quarter report.
Credit agencies have been getting a bad rap for being slow to react to the crumbling financial services industry, we may as well applaud when they're quick on the upgrades.
Sirius XM was on the brink of death in February. Even CEO Mel Karmazin warned that a bankruptcy filing was days away. One vulture investor later, Sirius XM has been able to improve its balance sheet, grow its business, and win over a tough customer in the S&P credit rating agency.
3. Happy trails to you
We're smack dab in a brutal recession that finds hotels slashing room rates to fill vacancies and air carriers scaling back on their routes. Buying into travel booking websites would naturally seem like a ridiculous notion in this climate -- but not if you're looking at Priceline.com (NASDAQ:PCLN) or China's Ctrip.com (NASDAQ:CTRP).
Both travel sites blew past Wall Street expectations this week. Priceline stepped up on Monday, posting revenue and profit gains excluding special items of 30% and 44% respectively. China's leading player followed two days later, upping the ante with net income soaring 80% on a 47% top-line gain.
Are folks traveling again? Well, that may be the case in China, but Priceline's success during the economic downturn is a greater testament to a brand that has established itself as a source for discounted deals. It's the right place to be, and the heady growth is simply the passport stamp of validation.
4. A marketing pitch in 140 characters or less
Santa's packing a whole lot of free Wi-Fi in his gift sack. Google, Yahoo! (NASDAQ:YHOO), and Microsoft (NASDAQ:MSFT) all announced connectivity for freeloaders this week.
Yahoo! is firing up a free hotspot in Times Square. Google will foot the bill for wireless connectivity at 47 busy airports for the next two months. Microsoft is teaming up with JiWire to serve up pro bono access to users at JiWire-powered hotels and airports, in exchange for a single search on Microsoft's Bing.
Sure, this may be bad new for wireless access providers. The united front does devalue connectivity, even if these are all temporary freebies. However, at a time when advertisers are willing to pay a pretty penny for holiday shopper leads, you have to like the gifting mind-set at Google, Yahoo!, and Microsoft that will ultimately reward the search engines. It's the gift that keeps on giving.
5. Seeing green in blue jeans
Amazon.com (NASDAQ:AMZN) is hoping that its new Denim Store is the right fit for the holidays. The new category is offering premium and classic blue jeans, peppered with the promise of free shipping and free returns.
That last point is a biggie. Apparel can be a tricky fit, and there's no such thing as a virtual fitting room in cyberspace. Hopefully this won't be a big problem for Amazon, having to eat the returns of denim that proves to be too loose or too tight. For now, I'll nod approvingly of the venture, especially the perfect pre-holiday timing.
