Google's answer to Amazon.com (AMZN), Product Listing Ads (PLAs), seems to be gaining traction, and advertisers are flocking to them in an exceptional way, said Ju.
"As we have noted before, PLA budgets appear to be largely incremental, and Google should continue to see the benefits in 2H13 from additional retailer adoption following the recent completion of its global rollout," the analyst said.
Brian Pitz at Jefferies, who rates Google "buy" with a $1,000 price target, noted that PLAs are largely a positive for Google, as advertisers are running more ads than ever. "PLA penetration [levels] in the UK are about 12 mos behind the US, but growth is high - a +ve given GOOG transitioned its Int'l Shopping program to a paid svc in Feb.," Pitz wrote in a note.
It will be interesting to see whether CPCs have started to rise both sequentially and year over year, as advertising is still the lifeblood of Google's business. If there is a sense that ad rates are going higher, investors may be googling "higher stock prices" for some time to come.--Written by Chris Ciaccia in New York >Contact by Email. Follow @Chris_Ciaccia
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV