Barclays Trims Google Estimates
Sorry, Google shareholders, but a respected international investment bank has taken the view that Google won’t do quite as well as previously forecast. Barclays lowered its estimates today, due at least in part to the fact the company won’t directly sell the Nexus One anymore.
Barclays now expects to see Google report pro forma earnings per share of $6.49, not $6.57, for the second quarter. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is then supposed to take a similar dip, heading from $3.067 billion to $3.028 billion.
Fans of the search giant shouldn’t worry too much, though. The target price remains $650, and David Kaplan wrote this morning, "Things still look good for Google over the next six months. For the full year, [Barclays analyst Doug] Anmuth is forecasting a 19.5 percent net revenue gain."
Also, here’s an interesting tidbit regarding how Google’s stock is behaving today: even though Yahoo, the Nasdaq, Microsoft, and the Dow are down by sort of a lot at the time of this writing (1.17 percent, 1.76 percent, 1.81 percent, and 2.05 percent, respectively), Google’s stock is up 0.02 percent at the moment.
Google’s up an even more impressive 7.13 percent if you adopt a five-day view of its stock, too.