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J.P. Morgan Cuts Google Price Target By $73

Lowered expectations ahead of Q2 earnings report

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In eight days, Google will give its second quarter financial report, and at least one group of analysts seems to think bad news is inevitable.  J.P. Morgan cut its forecasts in several respects this morning, with the most dramatic reduction being a $73 chop in Google’s price target.

GoogleJ.P. Morgan’s Imran Khan, speaking on behalf of his company, stated according to Henry Blodget, "We are now modeling 2Q revenue and EPS of $4.92B and $6.38 vs. our prior estimates of $5.07B and $6.61.  We are also reducing our price target to $566 from $639 given our lowered estimates."

All of which seems bound to upset some people.  Historically, Google’s been a company more or less capable of printing its own money; sudden lurches towards a slower growth rate can’t go over well with investors.

Still, the cuts come due to the discontinuation of the Nexus One, which is in Google’s past, and the weakness of the Euro and pound, which is out of its control.  So it’s not like anyone discovered Google’s data centers are a week away from melting down.

J.P. Morgan even kept its "overweight" rating on Google, too.

Finally, for what it’s worth, things are even going pretty well for Google’s stock on the market today.  At the moment, it’s up 1.61 percent, while Yahoo and Microsoft are only up 0.98 percent and 0.76 percent, respectively.

J.P. Morgan Cuts Google Price Target By $73
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  • http://www.LAokay.com Adsense Publisher

    What about the fact that more and more publishers are getting their Adsense accounts suspended/banned without warnings. Some publishers have been in good standing for years and making Google a bit of money are scratching their heads to why their accounts were taken away, and are left with vague emails that don’t explain much to them.

    I give Google 5 more years at most.
    It’s their stock price that is keeping the company alive and as that drops even further, so will be the end of Google. It’s a poorly run company at best, spending gobs of money into new technologies and new products, while spending very little of that money to their existing products and services (excluding their search engine of course), which includes little spent for support for those products and services.