Google, Inc. (NASDAQ: GOOG) will be reporting its fourth quarter results today after the close of the market. Of course, the arguably hottest internet company will also be reporting on its overall fiscal year 2007 results as well. Normally, Google takes analyst expectations, smashes them to bits, and then acts like nothing happened. Will the search giant do the same thing this afternoon?Google's shares have been shaken from a high of over $700 this past Christmas to under $543 today, as the company has joined in with the overall market teeter-totter amid continued housing worries and recession talk and FUD that spreads like wildfire every week. Will it recover some lost ground in after-hours trading if the company reports another standout quarter? Perhaps -- and it could lead to a tech stock recovery tomorrow in standard market-nuttiness fashion. Remember, Microsoft Corp. (NASDAQ: MSFT) had an excellent quarter as well just recently. As usual, the company's stock yawned and fell asleep.
Google is expected to report earnings of $4.45 per share on $3.45 billion revenue -- results any company in any industry would love to have. If Google once had dreams of a $900 share price, the company may never get there if results continue to match (or slightly surpass) analysts' expectations during 2008. Regardless, the company's leaders -- founders Sergey Brin, Larry Page and CEO Eric Schmidt -- will be around for a few decades to ride the company's potentially turbulent waves.
[DISCLOSURE: the author holds a long position in MSFT]
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Reader Comments (Page 1 of 1)
1-31-2008 @ 12:48PM
EMIL J KOVACH JR said...
EVERY Ad Spending Projection I See--says They Intend To Spend MORE On Online Advertising And Less On Other Media.
And Google Seems To grow Market Share--Each Quarter.
RADIO--TELEVISION--MAGAZINE--NEWSPAPER.
Are Losing Ad Dollars To the internet, Every Quarter.
BUT--These BROADCAST--PRINTED MEDIA Are Also Building Web Presence,
So Some Will Show Up On Their Websites.
So, Not ALL Ad Revenue--For ONLINE Will Be Spent On Search Engines, But It Is Obvious The Ad Dollars Will End Up ONLINE More And More,
On the Search Engine Or Website.
EMIL J KOVACH JR
1-31-2008 @ 1:35PM
StareClips.com said...
@EMIL, Keep in mind that Google doesn't only make money from advertising through their search engine. They also make money from advertising through partner websites (AdSense, MySpace, AOL) and their own high-traffic websites (orkut,YouTube). So, as more and more BROADCASTED and PRINTED media companies form a web presence, they may also form partnerships with Google for advertising dollars. So, thinking of Google as only a company that makes money from search-based advertising ignores a whole other aspect of their business model. They make money from ONLINE ADVERTISING as a whole, across the entire Internet. This will only be further enhanced by the acquisition of DOUBLECLICK.