
Ahead of the Bell: Google Chrome dazzles analysts
Analysts were largely positive on Google Inc.'s introduction of Chrome, its own Web browser, saying that anything that steers traffic to its search engine is a good thing.
"Having control over the entire application becomes mission critical for Google," wrote Christa Quarles at Thomas Weisel Partners in a Wednesday morning note, a day after the release of the browser.
Google made it available as a free download for Windows computers on Wednesday afternoon.
Quarles said the importance of the new browser will likely be greater on the cell phone side. The first phones with Google's Android software are set to launch before the end of the year, and the analyst said Android's browser will likely share technology with the PC application. Web searches from cell phones are seen as the big growth area of the industry, and no one browser dominates the platform.
"It seems Google's PC and mobile browsers will have a common back end, positioning the company well for the 'one-web' environment that will eventually manifest across all devices," Quarles wrote.
Citi Investment Research's Mark Mahaney said the Google's move makes strategic sense.
"There is room in the market for a speedier, simpler, stabler & safer Browser," he wrote late Tuesday.
Jeffferies & Co. analyst Youssef Squali said success is not a given for Google, considering that Microsoft Corp.'s Internet Explorer has more than 70 percent of the PC browser market, and getting it in front of users could be a hurdle.
"Chrome success will depend on Google's distribution prowess," Squali wrote.
Google shares were unchanged in premarket trading from Tuesday's $465.25 closing price.
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