Munster Says Buy Google (GOOG) on Chrome Launch

September 2, 2008 5:38 PM EDT

Appearing on CNBC's Fast Money, Piper Jaffray's Gene Munster told viewers to buy Google (Nasdaq: GOOG) on today's launch of the beta version of its first ever Internet browser - Chrome.

While Google is launching the browser for free and will not make any money from the browser launch directly, Munster believes that investors will look back at this move in a year and call it a brilliant move. Further, Munster called the move "defensive" as Google will now be able to capitalize on users who are performing search's using their actual browser, rather than heading to the Google site.

The Piper analyst expects Google to to control 10-15% of the browser market within a year. He points out that it took Mozilla's Firefox about 3 years to gain about 25% of the browser market, but feels that Google will be able to steal market share much sooner, eventually beginning to cut into Microsoft's (Nasdaq: MSFT) 70% share with its Internet Explorer.

Finally, Munster mentioned that shares of Google historically trade up about 32% from September to year-end. He said Google has "strong seasonality".

Google, Inc., a technology company, maintains index of Web sites and other online content for users, advertisers, Google network members, and other content providers.

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