Google (GOOG) Rolls Out Social Marketing Strategy

NEW YORK (TheStreet) -- Google (GOOG) has revised its terms and conditions in a move to capitalize on social marketing trends, an area Facebook (FB) and Twitter already have tight grip on.

The revision will allow Google to incorporate users' names and photos in advertisements targeted at their social networks. Endorsements will only be posted if a user has previously interacted with a brand, such as by commenting, following or through Google's '+1' recommendation button.

Google shares traded in a tight range on Friday, up 0.35% to $871.30 as of 3:40 p.m. New York time. Google has recouped most of the losses sustained throughout the week, settling around 0.15% lower since Monday.

TheStreet Ratings team rates Google Inc as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

"We rate Google Inc (GOOG) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. 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 increase in stock price during the past year. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 22.7%. Since the same quarter one year prior, revenues rose by 19.5%. 
  • GOOG's debt-to-equity ratio is very low at 0.06 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 4.08, which clearly demonstrates the ability to cover short-term cash needs.
  • Net operating cash flow has increased to $4,705 million or 10.65% when compared to the same quarter last year. Despite an increase in cash flow, GOOGLE INC's average is still marginally south of the industry average growth rate of 14.23%.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.

Written by Keris Alison Lahiff.

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