Kevin Delaney's Heard on the Street column in today's Wall Street Journal quotes three portfolio managers who believe Google (ticker: GOOG) stock is cheap. The key point: Internet growth is faster outside the US, Google's market position is stronger there, but so far it hasn't fully monetized its non-US business. Mr Delaney writes:
The three portfolio managers quoted think Google's stock is worth $320-350, with one manager calling it "extremely cheap". Full article here (paid subscription required).
...Google offers its service in over 100 languages and says the majority of its search queries come from outside of the U.S. In May, the company handled 73% of all searches in Germany, 62% of all searches in France and 55% of all U.K. searches... That compares with 48% of all U.S. searches in June. Yet, despite being stronger in some key markets abroad, just 39% of Google's revenue was from international operations during the second quarter. Last week, it announced it had teamed up with three Chinese resellers for its ads.
Also, Google could easily generate revenue from popular services that are now ad-free, such as its Google News service and mapping products. Google Maps and the site for its related Google Earth application had 13.3 million U.S. users in July...
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