Google’s Earnings Report Rumored To Be Good
In the past three months, Google’s stock has gone down by approximately $135 per share. Not good, eh? But it’s once again time for investors to place their bets, as we appear to be heading towards an upbeat earnings report.
Wendy Tanaka writes, "Buoyed by strong growth in search-advertising revenues in the U.S. and abroad, the Internet giant is expected to report a 40% increase in net income and a 54% jump in revenues for the fourth quarter." Which sounds like a return to the happy old days of $700 stock prices.
What’s more, there isn’t a loud chorus of onlookers expecting similar decreases. Of course, that could just mean everyone will be wrong, but online advertising is supposed to be one of the last safe spots to stand in a recession.
Tanaka also points out, "nearly 50% of the company’s revenues come from outside the U.S.," so a weak American economy shouldn’t hurt Google as much as some other businesses.
The earnings report should be interesting, anyway. Even for someone who’s not involved in the stock market, all the sharp up-and-down motions have been nearly enough to cause seasickness.