Standard Poor’s equity researchers sharply downgraded Google stock Tuesday, nudging its rating down to a “sell” from a “buy.” SP lowered its price target to $500 from $700.

After further consideration of Google’s plan to buy Motorola Mobility, “we see greater risk to the company and stock,” noted SP analyst Scott Kessler.

Google on Monday agreed to acquire Motorola Mobility in a $12.5 billion deal that positions it as a maker of smartphones, tablets and TV set-top boxes as well as arms it with a fortress of intellectual property to defend itself from patent lawsuits.

Kessler noted that despite Motorola Mobility’s “extensive and and valuable patent portfolio,” SP wasn’t sure that could protect its Android operating system from intellectual property disputes.

Further, he noted, the Google-Motorola deal could negatively hit the search giant’s growth and financials.
Source:dotmem