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GOOG Up Slightly
Shares of GOOG are trading up with the market as a better-than-anticipated jobless report is elevating the battered indices. Second quarter results will be announced on Thursday, July 15 at 4:30pm EST. Other catalysts include China’s final decision on Google’s Internet licence; Android and mobile adoption; the release of Chrome operating system this fall; as well as traction in other newer (and numerous) initiatives. The stock trades at approximately 16x 2010 EPS and 13x Enterprise Value / EBIT, inexpensive relative to historical trading levels and the broader Internet group.
Analysts Lower Earnings Estimates But Say Investors Should Buy The Stock (Barrons)
J.P. Morgan analyst Imran Khan trimmed his Google EPS estimates and price target (to $566 from $639) ahead of the second quarter earnings report. He maintained his Overweight rating on the shares and believes that the discounted valuation is “unjustified.” The reduced estimates reflect the impact of the weaker Euro against the dollar, the costs of currency hedging and the elimination of direct Nexus One phone sales. Jason Helfstein at Oppenheimer & Co. jumped on the band wagon this morning as well, cutting his price-target to $600 and reducing estimates based on international organic growth and exchange concerns.
Google Second Quarter Earnings Might Be Bad News For Rest Of Tech (The Street)
Google will lead the tech sector in reporting earnings next week, but it might come as bad news to the tech sector and the overall economy as a proxy for spending (advertising). The search giant is expected to report flat (up 1%) sequential domestic revenues, with European revenues down 6% because of the economic turmoil and exchange rate. The bulls will point out that this is ~20% year-over-year growth, while the bears will harp on the difficult sequential comps.
Daily Trader: Bullish Pressure Building In GOOG (Learning Markets)
There is bullish pressure building in GOOG. Looking at money flows earlier in the week, the stock has an up/down ratio of 97/100. The question remains: will GOOG continue falling or will increasing bullish sentiment help turn things around and start pushing the stock price higher? The stock has lost nearly 14% the past month and is currently trading below its 20-day, 50-day and 200-day moving averages.
Google Set To Top M&A Market In 2010 (Business Week)
Google is showing no signs of slowing its merger and acquisition activity for the year, putting the company on track to top the venture capital market in 2010, ahead of Cisco, IBM and Microsoft. As Google steps up the competition against Microsoft and Apple, it is increasingly purchasing technology and key talent from startups rather than developing it in-house. That’s a good thing too; time to play catch up.