Google Inc. (GOOG): Today's Featured Internet Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Google ( GOOG) pushed the Internet industry lower today making it today's featured Internet laggard. The industry as a whole closed the day up 0.3%. By the end of trading, Google fell $6.92 (-1%) to $684.21 on light volume. Throughout the day, 1.9 million shares of Google exchanged hands as compared to its average daily volume of 2.9 million shares. The stock ranged in price between $682.42-$696.88 after having opened the day at $695 as compared to the previous trading day's close of $691.13. Other companies within the Internet industry that declined today were: Youku Tudou ( YOKU), down 7%, ClickSoftware Technologies ( CKSW), down 4.8%, LookSmart ( LOOK), down 4.6%, and ModusLink Global Solutions ( MLNK), down 4.1%.
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Google Inc., a technology company, maintains an index of Web sites and other online content for users, advertisers, and Google network members and other content providers. Google has a market cap of $182.24 billion and is part of the technology sector. The company has a P/E ratio of 21.5, above the S&P 500 P/E ratio of 17.7. Shares are up 7% year to date as of the close of trading on Thursday. Currently there are 25 analysts that rate Google a buy, no analysts rate it a sell, and five rate it a hold.

TheStreet Ratings rates Google as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the internet industry could consider First Trust Dow Jones Internet Idx ( FDN) while those bearish on the internet industry could consider ProShares Ultra Short Technology ( REW).

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