This Day On The Street
Continue to site
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

Why You Might Give Google Another Chance

Lindsay says Google is recession-resistant -- but not recession-proof.

"They're not totally insulated from it," he says, noting that the company could take a hit if advertisers decide to pull back on spending. Consumers also will be less likely to click through ads for, say, a plasma TV, if they're feeling the pain.

At the same time, with advertisers shifting their spending from traditional mediums to online, Google still stands to weather -- and even benefit from -- a downturn.

Citigroup analyst Mark Mahaney notes that over the last two years, Google's forward price-to-earnings ratio has ranged between 25 and 35. At $500, Google's P/E ratio of 25 would suggest a bottom is at hand.

As for any potential merger between Yahoo! (YHOO - Get Report) and Microsoft (MSFT - Get Report), Mahaney expects Google to remain on top.

Google is widely expected to maintain its lead over the two companies in search, even if they combine their resources. Lindsay says Google may even benefit from the merger by stealing away some of its rivals' customers as well as its workers.

"We think it's probably going to be a net positive for Google," he says.

2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
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!
SYM TRADE IT LAST %CHG
AMZN $445.10 0.00%
EBAY $59.20 0.00%
GOOG $565.06 0.00%
MSFT $47.87 0.00%
T $34.01 0.00%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs