As time moves forward, Google (GOOG) continues to keep up with progress, and as a result, it has become a household name and even a verb. The current business for Google looks strong, and it has exciting developments on the way. Legal uncertainty may lead investors to be a little wary, but the current legal situation does not show too much cause for concern. Other positive news overshadows the legal news, furthermore, which leads me to believe Google stock will be rising as a result.
In terms of its legal situation, Google stock will probably remain fairly consistent and should not be facing large drops or large gains as a result.
Good news has come in the form of one court decision for Google. The court ruled against the claims of Oracle (ORCL) as the company was seeking payment for damages on a patent issue. While Oracle is continuing to seek payment for other copyright damages, this is a great outcome for Google and will likely assuage the doubts stockholders had as a result of Oracle's charges.
This was only one legal victory, however, and the overall legal situation for Google is much more neutral, especially in relation to Motorola Mobility. A recent court hearing has ruled in favor of Microsoft (MSFT), as the company claimed that Google's Motorola Mobility infringed on its patents related to text messaging. The author here also noted that this is one of many legal battles occurring over intellectual property. Another case led to a rejection of Microsoft's complaints, and Motorola Mobility is suing Microsoft over intellectual property related to Xbox systems. The author also notes that Apple (AAPL) is also a major player in the developing legal struggles.
As there is currently such a mass of court cases over intellectual property, these major companies may be the subject of skepticism from stockholders. As there is not a company that is currently winning or losing a high number of cases, however, this will probably balance out. Stockholders should keep an eye on the various cases surrounding these companies as they continue to develop. If the balance changes so that one company is winning a large number of cases or losing a large number, it could have a great positive or negative impact on that stock. For the moment though, the impact is probably quite neutral.
Google is also receiving much criticism about the content on its search engine, so as a part of its Transparency Report, Google has published data on which companies make the most requests for the removal of content. Google is also working to improve the speed with which it handles content removal requests. This is good news for stockholders, especially as legal cases are becoming so common. Keeping other companies pleased with how Google handles content removal and copyright issues is important for avoiding future legal difficulties. Once again, this may not have a large impact on Google stock, but it will help maintain a fairly neutral impact from legal factors.
The outlook for Google in terms of its business and development looks much more positive than the legal situation though.
As more people are investing in advertising, the business for search engines is improving as well. This comes as good news for large companies like Google and Baidu.com (BIDU). Baidu will continue to control the Chinese market and Google should continue to thrive everywhere except there. It's just a point that the business models are improving and the companies should be stable for times to come.
In addition to the improved business, Google is taking pride in its search engine by creating a much-improved app for iPhones that will make its services even more accessible to users. As the market for search engines is improving, therefore, this development comes at a good time and will help Google stock make gains in a much more immediate way.
Another development for Google is that its new tablet will likely be launching in July. This is 7-inch tablet that will help Google compete with Amazon.com's (AMZN) Kindle Fire. Apple may be releasing a 7-inch tablet in October, as the market for this tablet is increasing. As details continue to reveal themselves, Google stock will likely rise as the hype continues to generate over this release. If Google can provide improvements for the 7-inch tablet market, the release comes at an opportune moment.
Google has also revealed video footage taken from the glasses it is developing through Project Glass. So far, the quality is not great. It does, however, give more indication about what this device will be able to do, even if it is still in development and in clear need of improvement. This will help create more hype for future Google products, but the disappointing quality may lead this to have a fairly neutral impact on Google stock.
One more recent development for Google shows the care it is taking not to encounter more legal trouble than is already facing the market. It now has obtained permission to offer Google Earth, Picasa, and Google Chrome in Syria. This shows the company expanding not only in terms of what products and services it is offering, but also in where it is offering its programs. This will have a positive impact on Google stock as the company is expanding its presence in yet another country. Furthermore, as it has taken proper legal precautions, this should not have any legal ramifications.
Despite the legal complications surrounding Google and a variety of other companies, Google continues to develop and progress. The business with its search engine is growing, and it has taken advantage of this through its new iPhone app. It is also taking advantage of another growing industry through its new 7-inch tablet nearing its July release. It even continues moving forward with innovative projects like Project Glass. The legal issues are quite minor in comparison to these developments, and I would imagine Google stock will be rising as a result of them.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.