"Better than headlines suggest," says Baird's Colin Sebastian of Google's (GOOG) earnings results last night. Reiterating his Outperform rating and $675 price target, Kallo says the results are largely inline with expectations, and the company remains on track to leverage multiple long-term growth opportunities.
"Our view on Google remains positive given the solid growth in the Websites business and multiple drivers that we expect to keep revenue growth near 20%," says Needham's Kerry Rice. Drivers include: "1) the push to bring brand advertising dollars to search and display, which we expect to become an important revenue driver over the next 18-24 months, and we note that an earlier ramp could drive upside. 2) The Android ecosystem puts Google as a preeminent mobile player. 3) We expect a modest but gradual improvement in CPCs. 4) Network revenue growth, while sluggish, should have a stronger H2."
Calling Q1 a "small bump," Piper's Gene Munster says Google remains on track for steady growth in its core business as it invests in other products. "We continue to view Google as the best long term large cap story in our coverage space."
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