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
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
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
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
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts