GuruFocus Premium Membership

Serving Intelligent Investors since 2004. Only 96 cents a day.

Free Trial

Free 7-day Trial
All Articles and Columns »

Google Offers Value for Money

April 19, 2014 | About:

Nitish

1 followers

Google (GOOG) has continued its good run from the last year. The tech-giant has been trading down more than 4% in early trading on Thursday. The company has had a history of missing as well as beating the expected earnings estimates.

If we look at the company’s performance in the last thirteen quarters, we’d find astounding results. The company, for the record, has surpassed expectations 5 times in the past. On the other hand the company has disappointed on 4 times while just met it on other 4 occasions.

The analysts and experts owe it to the high volatility of the advertisement market. Other faction is of the view that this could’ve been because the company looks out and invests on a long term basis. For the record, the company made $2.50 a share in FY2005. Current consensus calls for Google to deliver over $32 a share of earnings in FY2015.

Google is a tech-giant and has a market cap of more than $350 billion. Despite this fact, sales are growing and should do so for many years to come given the exponential growth of mobile as well as more advertising moving online from offline sources. The company has dominated the scene for many years and is going to be doing so for many more to come. In addition, the company has more than $60B in net cash & marketable securities on the books. This represents more than 15% than its current market capitalization. Earnings should continue to post 15% or better year-over-year gains and the shares go for under 17x FY2015's projected EPS with the stock's recent decline. Whatever the case is, as long as the payout the big and dirty the investors mustn’t worry for it then offer a great value for their money.


Rating: 0.0/5 (0 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK