The Top: Google buys Nest Labs

Discussion in 'Wall St. News' started by drownpruf, Jan 17, 2014.


    No doubt in my mind that we're within 5% of a cyclical top in the equity markets. GOOG buying a maker of thermostats for $3.2B in cash. Nest Labs at $15MM in revenue. 6% of GOOG's cash position.

    Nest had some copy (since removed) on their site stating that it will show you how to save energy by turning down your thermostat. Rly?

    GOOG 1151.51 last
    SPX 1841.82 cash

    We will be materially lower in a year.
  2. ElCubano


    if they could show me how to save energy by turning down the stat, Id be really impressed.
  3. JB3


    If you thought Google bought NEST for their thermostats, you must be living under a rock or do not understand technology. Google is buying them to take over the home technology / monitoring space. If NEST can monitor and "connect" to your thermostat, just think of how Google can use that technology to infiltrate every appliance, electronics and data mine the daily activities of its customers. They are also buying the team at NEST, which is the Apple team. $3.2 billion dollars will seem like steal when Google is done with that technology.
  4. How are they going to "infiltrate" my dishwasher, numbnuts? I don't need my TV or microwave turned on when I'm away, and I already have my lights monitored from my android, thanks. Maybe your wife will buy the NEST dildo and they can stream you two some pron when you're going at it.

    They could do better with <$100MM vertical investment. $3.2B and no barrier to entry and $15MM in revs. The engineering team (what, 6 guys who worked on the iPod?) were basically run out of Apple. Apple didn't bid because it would've been full-retard.

    Please tell me how they will "take over" the monitoring space? By buying a small player in the space?
  5. I think what you're missing, drownpruf, is scalability. Because NEST already has customers, they can scale to an unlimited number of "subscribers" and households.

    What it appears Google is trying to do here is gain traction in a market that they simply want to apply their Android technology to. The thermostat particularly is where most of the households in America control their electricity and utility bills, so getting a company with revenues sufficient enough to be considered for publicly traded status means that they will have an easier time integrating the technology into an experimental group of the current client base.

    So with the technology already having a current customer base Google will be able to experiment with Nest's customers and integrate them into some sort of at home App. Believe me, the households that already have this should be really excited because they will get to see what Google has in mind.

    Apparently the technology mostly controls the thermostat. So the thermostat has a connection to the internet that is Google's Bread and Butter because of Chrome and Android the communication is seamless considering that really even in trading a simple command is all that's required for handling any changes to a current modicum.

    The Nest buy looks like a good place for Google to start in the home but with Apple TV coming online they may not have first mover advantage because Apple TV is also the primary instrument with which Apple can control other parts of the household.
  6. Beau, their customer-base is a rounding error in their market. It's a joke investment. The equivalent of Quaker buying Snapple.
  7. +1... drownpruf doesn't get it.
  8. This is an investment in the Internet of Things.
  9. Ash1972


    This is exactly the sort of language everyone was using back in 1999/2000. It's a new paradigm, stupid. Get with the times.

    BTW "the internet of things" used to be called "java on your toaster" back in the late nineties. Same shit talk, different bubble.
    #10     Jan 17, 2014