Google Inc. (NASDAQ:GOOGL)’s move to lease NASA’s Moffett Field airfield in California for $1.16 billion clearly signals its intention to focus more on other business areas, away from search. CNBC’s Karen Finerman who is long on the stock believes Google could hit a home run with the 60-year old lease agreement just as it did with YouTube.
Google will reportedly invest more than $200 million in improvements on the site, which will reportedly act as a research assembly and testing center for robotics, space exploration and space exploration.
“Plus or $200 million payment to improve the property. It sounds like a lot of money to you and me, $1.2 billion however over 60 years I think it came to 6 cents a share or so. So it does not really move the needle. I don’t love when Google Inc. (NASDAQ:GOOGL) does this kind of stuff, but every once in a while they do hit a home run with a YouTube or something, “said Mrs. Finerman
Google Inc. (NASDAQ:GOOGL) is planning to commit more resources into other cutting-edge technologies in the coming future as the company seeks to expand its wings beyond search. CNBC’s Scott Wapner believes Google is doing this kind of deals as a marketing tool to show investors it is doing all it can, to expand beyond the search business.
“Eventually they will either hit on this because they have hit in the past but am more concerned with the fact that Google Inc. (NASDAQ:GOOGL) can’t get above its moving averages. That’s more troublesome for me with this company and am still long on it. So am not worried about NASA am worried about the chart, “said Mr. Wapner
The announcement of the Moffett Filed deal comes on the heels of Google Inc. (NASDAQ:GOOGL) agreeing to buy Satellite Company Skybox imaging for $500 million as the company seeks to bolster its mapping services. The company is also reportedly partnering NASA in the development of a number of smart robots as shift from the core search business gains momentum.
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