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

Are Google Shares Cheap at $300?

SAN FRANCISCO -- Google's (GOOG - Get Report) strength is no match for the economy's weakness.

The once-unshakeable Internet kingpin now sees its shares trading at a three-year low, undercut by recent analysts' reports that predict a slowdown in the fourth quarter exacerbated by continued erosion in consumer spending.

But with its stock now scraping the $300 level after plunging 15% in just the last five trading sessions, some value hunters see an attractive place to wait out the worst.

On Monday, Doug Anmuth of Barclays took down his financial estimates for the company, expecting Google's revenue in the fourth quarter to be flat sequentially. Goldman Sachs analyst James Mitchell also trimmed his forecast and now anticipates revenue will grow by only 1% sequentially instead of his previous forecast calling for a 4% increase.

Google's shares have sunk 57% to $311.46 in the past 12 months, and although the company topped analysts' third-quarter estimates last month under a similarly pessimistic atmosphere, it's unclear whether it can pull off a repeat performance.

"Our checks with SEMs (search engine marketers) over the last several days, along with recent commentary from companies like IAC/InterActive Corp (IACI - Get Report) and InfoSpace (INSP), lead us to believe that the weaker retail and macro environment is finally catching up with Google and search," Anmuth wrote in his research.

"Our SEM checks have been mixed to negative, but indicate overall that the clear slowdown in consumer buying activity has impacted both the number of paid clicks and cost-per-click."

1 of 3

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
Dividend Stock Advisor

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
SYM TRADE IT LAST %CHG
GOOG $539.79 0.00%
IACI $75.99 0.00%
YHOO $43.38 0.00%
AAPL $132.04 0.00%
FB $80.55 0.00%

Markets

DOW 18,162.99 +121.45 0.67%
S&P 500 2,123.48 +19.28 0.92%
NASDAQ 5,106.5930 +73.8420 1.47%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs