This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Google Warms to Wall Street

Google (GOOG) is extending an olive branch.

The search engine giant's shares are down 18% this year, following a Jan. 31 earnings setback that cratered the once-invincible stock. So Google, after long sitting out the ritual in which companies and Wall Street court one another, is asking investors what they want to discuss at next month's meeting.

It's unclear how many people have been called or how long the survey has been going on, and Google didn't respond to a request for comment. But the effort will give the company a chance to tap into the concerns that have been building among investors.

"I have no idea how many people they are calling," says Martin Pyykkonen, an analyst with Hoefer & Arnett. He says he was contacted Wednesday by a firm hired by Google and replied that he wanted to hear about click fraud and pricing. Pyykkonen, who rates Google as a buy and has a $550 price target, said he didn't remember the name of the firm.

Questions abound ahead of the March 2 meeting. Investors have long wondered about the impact click fraud has on Google's bottom line. Skeptics say it's a serious problem, a claim the company has repeatedly denied, though it hasn't quantified how often advertisers get refunds for fraudulent clicks.

Figuring what's normal for Google also is a challenge for investors, considering its explosive growth and the grumbling of some advertisers about the prices for keywords.

Google has had an often rocky relationship with Wall Street, dating from its initial public offering in 2004. The Mountain View, Calif., company provides no earnings guidance and is stingy with what information it does provide to investors.

Wall Street analysts have a poor track record in forecasting the company's earnings. Before the Jan. 31 report, analysts consistently underestimated Google's growth. But that day, investors were looking for a good quarter and instead they got talk of how taxes were killing the company. The shares still haven't recovered. Google rose $14.72 at midday Thursday to $357.10.

Most analysts still say the stock is a buy, though their price targets vary widely from $255 to $600. One analyst even suggested that the shares could hit $2,000.

"I would see this as a positive sign," says Google shareholder Chuck Jones of Atlantic Trust Stein Roe, who doesn't feel slighted that he hasn't been contacted by the company. "It makes a lot of sense for an IR department to make sure that they are presenting what investors want to make sure that they talk about."

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs