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 down 1.5%. By the end of trading, Google fell $11.14 (-1.3%) to $869.79 on average volume. Throughout the day, 2,985,268 shares of Google exchanged hands as compared to its average daily volume of 2,311,300 shares. The stock ranged in price between $863.25-$876.32 after having opened the day at $871.88 as compared to the previous trading day's close of $880.93. Other companies within the Internet industry that declined today were: Friendfinder Networks ( FFN), down 23.4%, Mediabistro ( MBIS), down 13.9%, VirnetX ( VHC), down 8.9% and ChinaNet Online Holdings ( CNET), down 8.0%.
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Google Inc., a technology company, builds products and provides services to organize the information and make it universally accessible and useful. Google has a market cap of $239.9 billion and is part of the technology sector. The company has a P/E ratio of 28.2, above the S&P 500 P/E ratio of 17.7. Shares are up 24.5% year to date as of the close of trading on Friday. Currently there are 24 analysts that rate Google a buy, no analysts rate it a sell, and 6 rate it a hold.

TheStreet Ratings rates Google as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, robust revenue growth, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the positive front, Keynote Systems ( KEYN), down 46.7%, ModusLink Global Solutions ( MLNK), down 14.2%, Net Element International ( NETE), down 6.2% and QuinStreet ( QNST), down 2.6% , were all gainers within the internet industry with Akamai Technologies ( AKAM) being today's featured internet industry leader.

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).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

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