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Thursday, October 14, 2010

Google (GOOG) WOW’s investors with Q3 earnings!

Google sees a surge in after-hours pricing after Q3 earnings beat Wall Street estimates. Earning $7.64 a share a 32% increase.

The digital world is still growing substantially. Google has seen revenue growth in all of its sectors this quarter. (Search, display, advertising, mobile)
Can Google act like its normal self?
This year has just been frustrating for investors holding GOOG. News about China and rising expenses has left investors unsure about the future of the company.
Google Instant:
From a revenue standpoint there is little change, from a user standpoint Google Instant is great innovation. Users find themselves making more searches faster and the positive results are great.
Display brings over $2.5 Billion; this does not include text ads. Google believes strongly this is the movement of the future as it is already here and growing.

Mobile brought in $1 Billion to Google. People coming online on mobile are using Google for searches and more queries are coming in from android devices.

Google’s headcount increases 11%
What else is new?
Google hired bond traders to invest cash
Google invested $5 BLN into a wind turbine project
Google is testing robotic cars with the ability to steer itself
What does this mean?

When choosing whether Google is the right investment you need to also use “ninja skills” to guesetimate if Google will find the next big market and continue to grow its core search business. 

Mr.Stock Picks take on the stock:

I feel these numbers are huge! It blew all the estimates out of the water as Google usually does. Google is a great play for the Internet and Mobile Tsunami. They are diversifying in many different sectors and growing their current businesses. I don't think that we will see the aggressive growth GOOG has shown in the past but I still believe in the online growth story.

GOOG Price Target - $630 


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