Google tops $1,000 following Q3 beat; peers rally in sympathy

"We believe that Google's (GOOG +12.8%) ability to monetize experiences through engagement-based services will allow it to disrupt many hardware and software layers over time," writes Evercore's Ken Sena, exemplifying the glowing analyst commentary that has followed Google's Q3 beat.

Sena, who is raising his PT to $1,100, sees Google's services investments pressuring near-term margins, but also creating "a stronger platform ecosystem in which more collected data, better predictive analytics, and an increased amount of screen connectivity will lead to better overall search economics in addition to new opportunities."

Needham and Jefferies have raised their PTs to $1,150, and Deutsche has raised its target to $1,220. YouTube's mobile growth, strong paid click volumes, and the potential for Enhanced Campaigns to lift search ad sales (after doing less damage than expected in Q3) are all mentioned as reasons to stay bullish.

U.S. Internet peers continue to rally in sympathy: FB +4.1%. LNKD +3.7%. YELP +7.8%. AMZN +3.3%. Z +3.9%. TRLA +4.8%. ZNGA +2.8%.

Foreign Internet names are also moving higher: BIDU +5%. YOKU +6.9%. SINA +3.7%. RENN +4.4%. QIHU +4.9%. DANG +5.9%. YNDX +4%. SIFY +3.4%.

Google's Q3 results, details, CC remarks, transcript

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Comments (17)
  • Doyle3000
    , contributor
    Comments (2055) | Send Message
    Irrational exhuberance is back!
    18 Oct 2013, 10:37 AM Reply Like
  • Gary J
    , contributor
    Comments (11479) | Send Message
    No it's unlike 2000 in many ways.
    18 Oct 2013, 11:21 AM Reply Like
  • divtra
    , contributor
    Comments (164) | Send Message
    This time it's different! /s
    18 Oct 2013, 11:56 AM Reply Like
  • TimTV
    , contributor
    Comments (3) | Send Message
    Google stock price is a bubble right now. Pop!!!!!
    18 Oct 2013, 11:04 AM Reply Like
  • David Pinsen
    , contributor
    Comments (2335) | Send Message
    If you're long GOOG and think that, here are a couple of ways to hedge it:
    18 Oct 2013, 07:47 PM Reply Like
  • Gary J
    , contributor
    Comments (11479) | Send Message
    No thanks. You hedge it.
    19 Oct 2013, 07:32 AM Reply Like
  • mobyss
    , contributor
    Comments (2653) | Send Message
    Google needs to effectively double their revenues to get the PE back in line. Huge company with a PE near 30 is hard to maintain - like Apple about a year ago (they were only around 25).


    However, there are definitely some bubbles - Netflix PE 415, Chipotle PE 50, Tesla PE infinity, Amazon PE infinity. Even GE with a PE of 18 is a little rich for them with profit dropping from a year ago.


    So, Google could drop 30% to 40% if earnings do not rapidly improve and the outlook for future growth slows a little.
    18 Oct 2013, 11:43 AM Reply Like
  • synchrogeddon
    , contributor
    Comments (392) | Send Message
    Apple wasn't nowhere near 25 PE year ago. When its stock reached 700$ its PE was only 16-17
    18 Oct 2013, 12:21 PM Reply Like
  • Moon Kil Woong
    , contributor
    Comments (13623) | Send Message
    Google is doing well now that they can get advertisers to pay for direct promotional ads from friends who like specific things. It's a great way to sell stuff if you overlook the privacy breach of using people's pictures and personal data to exploit to sell stuff they like or buy.


    Until people punish Google and Facebook for mining and selling your data to people without explicit authorization and no compensation they will continue to mine you, sell you, and rake in more and more cash. I frankly am not surprised with their increased earnings given their astounding breaches in integrity to do it. Why no one else seems concerned is concerning.
    18 Oct 2013, 11:52 AM Reply Like
  • ispank
    , contributor
    Comments (1148) | Send Message
    Fully agreed, Google is Wall Street darling, it can get away with anything and everything, it has moat protections. if it was for Apple breaches in integrity, the social media, analysts, Wall Street would bash Apple to the punch.
    18 Oct 2013, 12:29 PM Reply Like
  • thealct
    , contributor
    Comments (196) | Send Message
    Our day for AAPL will come. it is just misplaced for now. The sentiment is turning, let the blind Wall street remain blind.
    18 Oct 2013, 12:31 PM Reply Like
  • haleiwahu
    , contributor
    Comments (4011) | Send Message
    I think people are too lazy or at least uninformed that they have the power to protect themselves and things will just go on for some time until some attorney gets angry enough to pursue an action against them. Until then nothing will change and your personal information will continue to be harvested without issue.
    18 Oct 2013, 04:36 PM Reply Like
  • stoj
    , contributor
    Comments (788) | Send Message
    personal schmersonal, google is free of charge, if you don't like it ? do not use
    18 Oct 2013, 05:22 PM Reply Like
  • mobyss
    , contributor
    Comments (2653) | Send Message
    Google is not free of charge. They charge you some of the time you are on their websites. I've read that the average user looks at ads anywhere from 5% to 15% of the time they spend on the internet. So, if you spend 2 hours a day, 14 a week, 728 hours a year on the internet, that means you are looking at ads for between 36 and 110 hours a year.


    Advertisers pay HUGE to get some of this "look time" on Google. Furthermore, we all know they tailor ads to your "browsing experience". Go to Ford dot com, then go directly to Google news. Notice something about the ads now?


    "Price-to-Eyeballs" used to be a dot-com-era joke, but it's no joke for a company like Google that makes billions. HOWEVER, their PE (earnings not eyeballs) is currently too high.
    18 Oct 2013, 06:03 PM Reply Like
  • Walter P. Chrysler
    , contributor
    Comments (300) | Send Message
    those "people" are the bulk of the human race. says "1 billion Android devices have been activated." this is on an avowedly insecure software platform. that's a lot of potential for behavioral analysis. I find it interesting however that few seem concerned about the lack of security. that strikes me as the area where "premium pricing" will remain.
    19 Oct 2013, 09:54 AM Reply Like
  • gmmpa
    , contributor
    Comments (680) | Send Message
    Perhaps the inflated price earnings ratios are just an early reflection of the inflated value of the US dollars because of poor economic policies in Washington. Maybe when inflation finally comes to Obama's outrageous economic policies corporate earnings will rise with prices and the PEs will realign with the reality that Google is worth a higher PE in worthless USDs. Maybe then we can really talk about bubbles and what the real PEs should be.


    Here's a question for the forum... What would you rather own Google and Apple stock or an equivalent amount in the cash account USDs when inflation finally shows the ugly face of government?
    18 Oct 2013, 06:12 PM Reply Like
  • mobyss
    , contributor
    Comments (2653) | Send Message
    Neither, oil futures.
    18 Oct 2013, 07:48 PM Reply Like
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