This Day On The Street
Continue to site right-arrow
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
TheStreet Open House

Google on Track for Solid Quarter

This seemed to have allayed fears about Google's ability to perform in a down economy, although the company is certainly not without its issues. Shares now trade around $530 -- nowhere near their $700 levels in November.

"We would characterize sentiment as mixed," Anderson wrote in his research. "The deceleration in U.S. revenue growth, decline in paid-click growth and macroeconomic concerns hold back enthusiasm for the stock."

Growth Leveling

Indeed, revenue growth for Google has been on the steady decline, falling to 45.7% in the first quarter compared to a year ago, from 51.9% in the fourth quarter vs. a year ago. In the third quarter, revenue growth was up 61.5% from a year ago.

Likewise, Google's paid-click growth had been slipping, to 20% in the first quarter, from 30% in the fourth quarter and 45% in the third quarter.

Mark Mahaney, an analyst for Citigroup, expects paid-click growth for the second quarter to slip again, to 16%. But some of that may be offset by accelerating cost-per-click growth, he added.

Mahaney further noted that Google's international revenue as a percentage of total revenue was 51% in March and 48% in December, up about 400 basis points year over year for both the first and fourth quarters.

"As with other leading Internet companies like eBay (EBAY - Get Report) and Amazon (AMZN - Get Report), we believe this significant international exposure has been and can continue to be a substantial driver of top-line growth," Mahaney said. "In the Internet advertising market, we view international growth rates at as much as twice those of U.S. levels."

2 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link 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

Jim Cramer's protégé, 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
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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!


DOW 17,416.85 +225.48 1.31%
S&P 500 2,021.25 +19.09 0.95%
NASDAQ 4,683.4070 +45.4130 0.98%

Partners Compare Online Brokers

Free Reports

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