woodhorb

A Google Bear's Take on Earnings

The title talks about earnings but then you switch to free cash flow? If GOOG profits only grow by 4% a quarter GOOG will meet analysts current estimates of $20 eps in 2008 and $24 eps in 2009; currently a forward PE ratio of just 22 which is not over the top by any means; GOOG management need to keep monitoring CAPEX and not do silly aquisitions but at $45 cash per share they have a lot more cash than most companies; agreed at some stage if youtube does not show promising monetization enough to justify the CAPEX expense you sell the business or close it down and move on