Analyst foresees 'Google Tunes'
Bear Stearns analyst Robert Peck predicted on Thursday that Google would roll out a music download service within three to six months that would be compatible with iPods and other MP3 players and would compete with Apple Computer's iTunes service.
"We believe that Google is in the midst of creating its own iTunes competitor, which we've dubbed 'Google Tunes.' We think this is a logical step, now that the nascent Google Video product has been introduced," Peck wrote in a research note. "We note that Google has not confirmed our expectations, and that our thinking is based on Mosaic theory. However, we do think this fits with Google's recent moves and its ultimate goal of organizing the world's information."
A Google spokeswoman said the company had nothing to announce at this time.
Google's stock rose $1.26 on Thursday to close at $434.26 a share while Apple's fell 2.5 percent to $72.33. MarketWatch reported that the Apple stock price drop was tied to the analyst report.