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

Did Microsoft Outfox Google?

MSFT's deal with Foxconn is a big victory because it will mean that manufacturers will be paying Microsoft for Android phones instead of Google. Score one for Mr. Softy! Sterne Agee analyst Shaw Wu told MarketWatch the deal "increases the cost of Android phones. "Microsoft has taken a more aggressive stance."

However, this isn't going to do major damage to Google's mobile device dominance with its enormously popular Android devices. Wu also doesn't think the Foxconn deal is a big threat to GOOG going forward and will not dramatically improve Microsoft's miniscule presence in the mobile device sales competition.

"In a way, the licensing agreement is a way for Microsoft to monetize mobile without being in mobile," he added. That should contribute to MSFT's future EPS and revenue growth.

Meantime, the anticipation surrounding GOOG's first-quarter earnings report is that the company will be able to demonstrate how successfully it's combining its dominance of the Internet search market with its growing, aggressive entrance into the mobile device market.

The ascent of GOOG and its stock price since late 2008 lows is mind-boggling, as you can see from the chart below. Its quarterly revenue per share growth has been one of the big factors driving the stock higher. GOOG Chart GOOG data by YCharts

A big contributor to those stellar revenue numbers has been Google's ad sales, the company's #1 way of driving profits. Those ad sales are supposed to improve by nearly 20 percent from the year-ago quarter based on analysts' estimates.

The big number to be watching is sales growth and increased revenue. Analysts' consensus estimate is for a 72.5% whopping increase. Most of this terrific sales growth comes from Google's leadership in the Internet search space, where it controls and receives about two of every three requests for information.
2 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 $627.26 0.00%
MSFT $45.35 0.00%
AAPL $122.77 0.00%
FB $94.20 0.03%
TSLA $253.39 0.15%

Markets

Chart of I:DJI
DOW 17,440.59 -127.94 -0.73%
S&P 500 2,067.64 -12.01 -0.58%
NASDAQ 5,039.7760 -48.8540 -0.96%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs