Google erases much of earnings-inspired loss as sell-side defends


"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."

Shares -1.5% premarket

Previous earnings coverage

This was corrected on 04/17/2014 at 02:22 PM.
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Comments (11)
  • Brian Barbour
    , contributor
    Comments (1321) | Send Message
     
    if this happened to Apple the shares would be down 10%...
    17 Apr 2014, 08:37 AM Reply Like
  • Tomal
    , contributor
    Comments (2483) | Send Message
     
    lol yeah that is true.
    17 Apr 2014, 10:00 AM Reply Like
  • R. E. Heggenhougen
    , contributor
    Comments (43) | Send Message
     
    Apple is history, GOOG is future. Just keep an eye on Glass and other inventions.

     

    REH
    17 Apr 2014, 08:50 AM Reply Like
  • synchrogeddon
    , contributor
    Comments (392) | Send Message
     
    yep... a lot of people (including me) will avoid those that wear google glasses because not everyone wants to be in front of camera
    17 Apr 2014, 09:46 AM Reply Like
  • nyc.scorpion
    , contributor
    Comments (53) | Send Message
     
    Agree.
    17 Apr 2014, 12:07 PM Reply Like
  • Yesterdays_news
    , contributor
    Comments (2111) | Send Message
     
    What future?

     

    There is currently WAY to much competition with Driverless Cars, Drones, and IOTs products. And investors have already voted against Google Glass. Just look at HIMX stock the last two months.
    http://bit.ly/1eQlhHd#{%22zRange%22:%224%22...

     

    Also, Bing and Yahoo's search are starting to move in on Google's bread and butter, because Page has pissed off too many users with higher ad pricing, bad updates, and spyware…
    http://bit.ly/1gBBivK

     

    Good luck with the pumping.
    18 Apr 2014, 08:34 AM Reply Like
  • R. E. Heggenhougen
    , contributor
    Comments (43) | Send Message
     
    you should avoid anyone with a cell phone then, they come with cameras you know. you should probably also avoid being outside, there are cameras everywhere. Or, you could sit down for a minute and see if you come up with any positive uses for products such as Google glass. It's half full in my book.
    18 Apr 2014, 09:25 AM Reply Like
  • synchrogeddon
    , contributor
    Comments (392) | Send Message
     
    I can see when someone uses smartphone to take pictures or camera (they need to point it at me). In case of glasses it is entire different story...
    19 Apr 2014, 04:05 AM Reply Like
  • rsbduff@gmail.com
    , contributor
    Comments (438) | Send Message
     
    Expectation bubble?

     

    All the High Tech stocks have an "expectation" factor built into their price.
    No growth, or decline, in revenue....for most industries, would be good, but in high tech... that will burst.... the "expectation" bubble.

     

    Google's revenues were up.....that's the number to watch. They may hit a revenue wall at some time.......They are always adding and losing advertisers.....As you run out of new sources and continue to lose....the problems begin.

     

    The big question...with Google...is? Can they bring long term R&D projects on line ...to create revenue, before they hit the revenue wall...in search engine advertising? My guess...."NO."

     

    RSBDuff
    17 Apr 2014, 09:03 AM Reply Like
  • BruinWrtier78
    , contributor
    Comments (95) | Send Message
     
    Using all of the economic arguments that so called experts have been throwing around for years, here's an interesting little tech stock Mad Lb:

     

    1. ___________ has missed earnings expectations _ times out of the last __ quarters (though not by much). Without question, the rate of earnings grow is slowing down

     

    2. ______________ is #_ at current market valuation at about $___B, compared to ______________ at $___B and _______________ at $___B. If ______________ grows to #1, the stock price would be $____, which is only $17 more than its 1 year target date. Won't the big number theory that dragged down ______________ apply to __________________ in the near future?

     

    3. ________________'s core business of ___________________ is the only place where they have demonstrated the ability to make a profit. While they are the dominant _____________________, _________________s could be reaching the point of saturation, and at that point revenue margins will start to shrink. Won't that signal the end of ______________'s days as a growth company?

     

    4. Just like ____________, ______________ and _____________ lost their position of market dominance, why would we assume that ________________'s technology won't be replaced by another company or a completely new technology? Currently, _________________ professionals all say that competitor ___________________ nets the highest sales conversion of any company that does _________________. There are other technological advances that may yield new forms of ____________________ that are even more powerful than that of ___________________.

     

    5. _______________ is a one-trick pony. Even though they dominate the field of ______________, those revenues will eventually run out. They've haven't hit another home run in __ years. Does this signal the end of their run as an innovative company?
    17 Apr 2014, 01:27 PM Reply Like
  • R. E. Heggenhougen
    , contributor
    Comments (43) | Send Message
     
    Google continues to innovate and has replaced Apple as the leader in innovation. Of course you Apple fanatics may disagree so lets just see in a year where we are at. The last year's ticker tape speaks for itself.
    18 Apr 2014, 09:20 AM Reply Like
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