This Day On The Street
Continue to site
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

Google Searches for a Mobile Answer (Update 1)

Sanford Bernstein analyst Carlos Kirjner believes that search will continue to grow double-digit percentages, and display and YouTube "will be material contributors to revenue growth and profitability, leading revenues and profits to beat expectations." Kirjner rates Google shares "overweight" with a $727 price target.

J.P. Morgan analyst Doug Anmuth believes that the quality of ads are changing for the better, but that could weigh on cost-per-click, a key metric, in the short run.

"Designed to be net revenue positive, search and ad changes are continually rolled out and the net impact to individual metrics can vary quarter to quarter," Anmuth wrote, in his research note. "Google commented on its Inside Search blog that approximately 107 search quality changes were made in the quarter (17 in January, 40 in February, 50 in March)." He rates Google shares "overweight" with a $686 price target.

Raymond James analyst Aaron Kessler believes that Google will report inline earnings later this week, but has some concern about Search Engine Marketing checks. SEM refers to gaining traffic from search engines, as epitomized by Google AdWords, or similar offerings from Yahoo! (YHOO) and Microsoft (MSFT).

"On average, Search Engine Marketing (SEM) checks indicate modest deceleration in search spend for the first quarter. Our discussions and industry data points from SEMs indicate low-double digit to low-20% year-over-year growth in the first quarter of 2012 (a deceleration from 20%-plus growth in the fourth quarter)," Kessler wrote in his research report. "While the SEMs have generally indicated a slowdown in first-quarter year-over-year growth rates, we would note that many of the SEMs recorded a similar slowdown last year during the first quarter." He rates Google stock "outperform" with a $740 price target.

Wells Fargo analyst Jason Maynard believes that revenue stemming from both the United States and Canada will continue to maintain its pace, but Europe and the UK may see weakness. "We are now forecasting a Q1 headwind from FX of less than 1% which translates into an approximately $60-$70 million negative impact on net revenue," Maynard wrote in his research note. He rates Google shares "market perform" with a $620 to $640 price range.

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Google reports earnings after the close of trading on Thursday. Analysts polled by Thomson Reuters expect revenue excluding traffic acquisition costs to be $8.146 billion and $9.65 in earnings.

Interested in more on Google? See TheStreet Ratings' report card for this stock.

-- Written by Chris Ciaccia in New York

>To follow the writer on Twitter, go to

>To submit a news tip, send an email to:
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
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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $94.02 0.00%
GOOG $683.57 0.00%
MMI $21.23 0.00%
FB $104.07 0.00%
TSLA $162.60 0.00%


Chart of I:DJI
DOW 16,204.97 -211.61 -1.29%
S&P 500 1,880.05 -35.40 -1.85%
NASDAQ 4,363.1440 -146.4150 -3.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs