Bear Stearns maintained an "outperform" rating on Google and said the Internet search giant may be looking to expand into the MP3 downloading business.
"We believe that Google is in the midst of creating its own iTunes competitor, which we've dubbed 'Google Tunes'," the analyst wrote in a client note issued today. "We think this is a logical step, now that the nascent Google Video product has been introduced."
Analyst Robert Peck speculated that it makes sense for Google to create a rival for the popular iTunes service by Apple Computer, given the explosive growth of unique visitors to the iTunes' Web site. "Further, Nielsen [Net Ratings] indicates that iTunes users form a distinct target audience with brand preferences along autos, alcohol beverages, magazines, and television," he added.
That wouldn't be very surprising, but they should do a better job with Google Video Store first.