Switch to:

Latest Guru Trades with GOOG

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Robert Karr 2014-09-30 Add 31.41%2.65%$562.73 - $596.08 $ 534.03-8%112964
Julian Robertson 2014-09-30 Reduce -27.95%1.2%$562.73 - $596.08 $ 534.03-8%14696
Bill Nygren 2014-09-30 Sold Out 0.81%$562.73 - $596.08 $ 534.03-8%0
George Soros 2014-09-30 Reduce -65.26%0.55%$562.73 - $596.08 $ 534.03-8%67572
John Griffin 2014-09-30 Reduce -13.97%0.36%$562.73 - $596.08 $ 534.03-8%394000
Frank Sands 2014-09-30 Reduce -8.74%0.25%$562.73 - $596.08 $ 534.03-8%1821190
David Winters 2014-09-30 Reduce -6.87%0.19%$562.73 - $596.08 $ 534.03-8%34023
Ken Heebner 2014-06-30 Sold Out 1.7%$509.96 - $578.65 $ 534.03-2%0
Daniel Loeb 2014-06-30 Sold Out 1.6%$509.96 - $578.65 $ 534.03-2%0
David Tepper 2014-06-30 Add 44.05%1.56%$509.96 - $578.65 $ 534.03-2%637067
John Griffin 2014-06-30 Add 100%1.3%$509.96 - $578.65 $ 534.03-2%458000
John Burbank 2014-06-30 Sold Out 0.96%$509.96 - $578.65 $ 534.03-2%0
Dodge & Cox 2014-06-30 Add 99.15%0.7%$509.96 - $578.65 $ 534.03-2%2495357
Frank Sands 2014-06-30 Reduce -17.08%0.56%$509.96 - $578.65 $ 534.03-2%1995584
Jean-Marie Eveillard 2014-06-30 New Buy0.47%$509.96 - $578.65 $ 534.03-2%338529
George Soros 2014-06-30 Add 69.09%0.34%$509.96 - $578.65 $ 534.03-2%194489
Mario Cibelli 2014-06-30 Reduce -28.21%0.28%$509.96 - $578.65 $ 534.03-2%2800
Chris Davis 2014-06-30 Reduce -7.1%0.22%$509.96 - $578.65 $ 534.03-2%1975118
Robert Karr 2014-06-30 Add 2.26%0.17%$509.96 - $578.65 $ 534.03-2%85964
Wallace Weitz 2014-06-30 Add 15.14%0.14%$509.96 - $578.65 $ 534.03-2%65492
Ray Dalio 2014-06-30 Sold Out 0.02%$509.96 - $578.65 $ 534.03-2%0
Ken Heebner 2014-03-31 Add 291.42%1.27%$558.46 - $559.99 $ 534.03-4%118600
David Tepper 2014-03-31 Add 86.84%1.16%$558.46 - $559.99 $ 534.03-4%442259
Mario Cibelli 2014-03-31 Reduce -27.78%0.44%$558.46 - $559.99 $ 534.03-4%3900
Daniel Loeb 2014-03-31 Add 31.25%0.38%$558.46 - $559.99 $ 534.03-4%210000
Ray Dalio 2014-03-31 Add 60.95%0.01%$558.46 - $559.99 $ 534.03-4%4489
Jean-Marie Eveillard 2014-03-31 Sold Out $558.46 - $559.99 $ 534.03-4%0
Wallace Weitz 2014-03-31 Reduce -22.02%$558.46 - $559.99 $ 534.03-4%56880
Richard Pzena 2014-03-31 Sold Out $550.615 - $610.085 $ 534.03-9%0
George Soros 2014-03-31 Reduce -25.86%$558.46 - $559.99 $ 534.03-4%115020
Robert Karr 2014-03-31 Reduce -62.54%$558.46 - $559.99 $ 534.03-4%84063
Premium More recent guru trades are included for Premium Members only!!
Premium More recent guru trades are included for USA Subscribe Members only!!
» Interactive Charts

Peter Lynch Chart ( What is Peter Lynch Charts )

Guru Investment Theses on Google Inc

Chris Davis Comments on Google - Oct 03, 2013

Our third largest position is an extraordinary technology company dedicated to organizing the world’s information and making it both useful and accessible to anyone, anytime, anywhere. In just 15 years, this company’s remarkable collection of engineers have been so successful that the company’s once strange-sounding name, Google (GOOG), has become a verb synonymous with Internet search. As a business, the company currently receives payment for the value of its technology by selling advertisers the right to place ads above or alongside a user’s search results. Such advertisements currently represent 95% of Google’s revenue, making the company the largest and most profitable advertising company in history. Because search has the advantage of allowing advertisers to control and track the return on their advertising expenditures (for example, they only pay if the ad is clicked on), they finally have a response to the lament of department store owner John Wanamaker who famously complained, “Half the money I spend on advertising is wasted; the trouble is I don’t know which half.”

In its core Internet search business, Google is the unquestioned global leader, with a 67% share of all Internet searches in the United States (compared to Bing’s 16% and Yahoo’s 12%), a stunning 93% share in Western Europe and a 74% share globally. While an estimated 80% of all searches still come from desktop PCs and tablets, Google is also the leader in mobile searches, which already account for 20% of searches and are growing rapidly. Google’s costs are largely fixed and consist of people and data centers. Each additional time a user clicks on an ad, the incremental revenue represents almost 100% profit. Google’s current operating margins in the low 30% range understate the company’s true profitability as they include enormous investments in innovative products such as Android, Google+, Google Wallet, and Google TV, which help widen its competitive moat, as well as “blue sky” products such as Google Glass and the Google car.

The company benefits from a number of key growth drivers including growth in the number of people and devices accessing the Internet both here and abroad, the continuing growth in the number of searches performed per user, the increasing number and value of display advertisements, and the global spread of smartphones through which billions of new users can gain access to the Internet. The company has significant competitive advantages, the most important of which is scale. Google’s industry-leading scale means that it has more advertisers bidding for key words than its competitors, which allows it to earn a disproportionate amount of search revenue (for example, Google has a 67% share of searches but an 82% share of search revenue). Scale also generates more search data, which leads to better search results, and more ads, which lead to better targeting and more useful ads. In addition, scale results in a larger R&D budget, which leads to an improved product and the ability to attract top engineering talent, which then attracts other talented engineers.

Google’s people and corporate culture are further important sources of competitive strength. As its co-founder and CEO, Larry Page, has only just turned 40 and is passionately engaged in the business, the company’s intensely innovative, driven and entrepreneurial culture is unlikely to change for the worse and, more important, the company is likely to remain the employer of choice for the country’s top technology minds. From a shareholder point-of-view, however, the culture is not perfect. The opportunistic repricing of stock options during the financial crisis was extremely unfortunate and, in our view, unnecessary. In addition, the company’s pay policies are structured so that a Google employee will rank in the 95th percentile or higher compared to employees performing a comparable function at other companies. However, this policy will be truly problematic only if the company’s employees fail to perform at the 95th percentile level (a dynamic that New York Yankee fans have come to understand all too well!). Finally, the company has a dual-class share structure, which means that public shareholders (like us) have no say about the direction of the company. Taken together, such policies may indicate a culture that favors employees over shareholders. However, having spent time over the years with management, our tentative response to this troubling aspect of an otherwise wonderful company is that management’s cynical view of investors is shaped by their formative exposure to the Wall-Street-hyped nonsense of the millennial Internet bubble and the short-term analysts and traders that have tended to leap in and out of Google’s stock based on quarterly results. Ultimately, we think the idealism, passion and principles of the founders are genuine. We would note, for example, the total compensation of Larry Page and co-founder Sergey Brin since going public has been $1 each per year.

At a share price of $880, Google has a $259 billion enterprise value, and trades at approximately 21 times estimated fiscal year 2013 owner earnings and 17 times estimated fiscal year 2014 earnings. Given the company’s growth prospects and competitive advantages, we consider this a fair price for a great company. The balance sheet is strong, with a net cash position of $49 billion, or 16% of the company’s market capitalization. The company has consistently generated high returns on invested capital, ranging from 38% to 48% over the last five years.

A main risk with the investment is that incremental searches, mainly in emerging markets and on smartphones, are less profitable than historic searches and might be insufficient to offset slowing core desktop PC search in the United States and Europe. Although we have seen revenue per search falling in the last few years, we believe that over time the value of both emerging market and mobile searches will rise. For emerging markets, we expect that increasing Internet penetration (globally now 39% compared with 81% in the United States) and a rising middle class will increase Google’s revenue per search from today’s low levels. In smartphones, we believe advertisers will start building mobile specific advertising campaigns using location-based advertising and features such as “click to call” and “click for directions.” A second risk would come from users choosing to bypass Google because a more useful search mechanism developed based on data that Google cannot access. At this point, the only plausible contender would be Facebook’s attempt to develop ways of searching for information from your “friends,” which might be more relevant than information from the Web in general. While this seems possible at the margin, it remains more theoretical at the moment. A final important risk may be a lack of discipline in capital allocation or a gradual trend toward “diworsification.” While there is some debate about the apparently high price paid for Motorola’s handset business, for example, the success of a number of Google’s other acquisitions, including Android and YouTube, lead us to give them the benefit of the doubt.

From Chris Davis' Davis Funds fall 2013 manager commentary.

Check out Chris Davis latest stock trades

Top Ranked Articles about Google Inc

Using the Phil Fisher Growth Checklist to Analyze Google
More than a few gurus followed on this site have attested to the importance of using an investment checklist to narrow down opportunities. Read more...
Google Joins Search For Autism Cure
For many people, their first exposure to the very real medical condition of autism came via the mostly fictional 1988 movie “Rain Man” and Dustin Hoffman’s portrayal of an autistic savant. Read more...
Google CEO Gets $38 Million for Stock
Lawrence Page, CEO and 10% owner of Google Inc. (GOOG), received more than $38 million for 66,664 shares of Google stock. The stock sold for $572.76 per share, making the transaction worth $38,010,479. Read more...
Weekly CFO Sells Highlight: Google Inc., Tesla Motors Inc., Roper Industries Inc.
According to GuruFocus Insider Data, the recent CFO sales were: Google Inc., Tesla Motors Inc. and Roper Industries Inc. Read more...
Top 10 Guru-Held Stocks of the First Quarter
Using the GuruFocus Aggregated Portfolio Screener you can filter results to see what companies maintain the highest amount of guru ownership. By using this screener, we filtered down to see which companies were held by the highest number of gurus. The following ten companies come from a variety of industries, are based actually all based out of the United States and are held by the largest number of gurus as of the close of the first quarter Read more...
Guru Stocks at 52-Week Lows: GOOG, C, HMC, SMFG, STT
According to GuruFocus list of 52-week lows, these Guru stocks have reached their 52-week lows. Read more...
Guru Stocks at 52-Week Lows: GOOG, HSBC, C, HMC, NMR
According to GuruFocus list of 52-week lows, these Guru stocks have reached their 52-week lows. Read more...
George Soros' Top Growth Stocks
George Soros (Trades, Portfolio) is a billionaire who primarily invests according to macro events or his view of the markets. He believes that investors’ biases highly influence the direction of stocks and markets. Last year, for instance, he made a substantial sum betting against fellow investor Bill Ackman (Trades, Portfolio)’s public short of Herbalife (HLF). Though Soros has closed his $29 billion Soros Fund Management to outside investors, he still participates in the management of family funds. Read more...
Gurus’ Most-Sold Fourth Quarter Stocks - Each at a 10-Year High
In the fourth quarter of 2013, the S&P 500 hit record highs, while the majority of corporations (95) reported negative EPS guidance, and 12 issued positive EPS guidance, according to FactSet Research. The estimated earnings growth rate for all corporations for the quarter was estimated to be 6.3%, according to FactSet. The Financial sector led growth, increasing earnings by 24.2%. Energy lagged all sectors, with an 8% decline in earnings. Read more...
Weekly CFO Sells Highlight: Google Inc., Facebook Inc., Gilead Sciences Inc., Palo Alto Networks Inc.
According to GuruFocus Insider Data, the recent CFO sales were: Google Inc., Facebook Inc., Gilead Sciences Inc. and Palo Alto Networks Inc. Read more...
» More Articles for GOOG

Ratios

vs
industry
vs
history
P/E(ttm) 28.40
GOOG's P/E(ttm) is ranked higher than
82% of the 522 Companies
in the Global Internet Content & Information industry.

( Industry Median: 105.00 vs. GOOG: 28.40 )
GOOG' s 10-Year P/E(ttm) Range
Min: 16.9   Max: 261.4
Current: 28.4

16.9
261.4
P/B 3.72
GOOG's P/B is ranked higher than
68% of the 522 Companies
in the Global Internet Content & Information industry.

( Industry Median: 3.85 vs. GOOG: 3.72 )
GOOG' s 10-Year P/B Range
Min: 2.85   Max: 21.54
Current: 3.72

2.85
21.54
P/S 5.43
GOOG's P/S is ranked higher than
60% of the 522 Companies
in the Global Internet Content & Information industry.

( Industry Median: 3.71 vs. GOOG: 5.43 )
GOOG' s 10-Year P/S Range
Min: 4.51   Max: 23.79
Current: 5.43

4.51
23.79
PFCF 31.91
GOOG's PFCF is ranked higher than
81% of the 522 Companies
in the Global Internet Content & Information industry.

( Industry Median: 183.79 vs. GOOG: 31.91 )
GOOG' s 10-Year PFCF Range
Min: 15.34   Max: 99.9
Current: 31.91

15.34
99.9
EV-to-EBIT 20.57
GOOG's EV-to-EBIT is ranked higher than
81% of the 522 Companies
in the Global Internet Content & Information industry.

( Industry Median: 74.98 vs. GOOG: 20.57 )
GOOG' s 10-Year EV-to-EBIT Range
Min: 11.1   Max: 86.9
Current: 20.57

11.1
86.9
PEG 1.89
GOOG's PEG is ranked higher than
93% of the 522 Companies
in the Global Internet Content & Information industry.

( Industry Median: 9999.00 vs. GOOG: 1.89 )
GOOG' s 10-Year PEG Range
Min: 0.25   Max: 2.06
Current: 1.89

0.25
2.06
Shiller P/E 35.69
GOOG's Shiller P/E is ranked higher than
91% of the 522 Companies
in the Global Internet Content & Information industry.

( Industry Median: 9999.00 vs. GOOG: 35.69 )
GOOG' s 10-Year Shiller P/E Range
Min: 26.36   Max: 59.22
Current: 35.69

26.36
59.22
Current Ratio 4.47
GOOG's Current Ratio is ranked higher than
89% of the 460 Companies
in the Global Internet Content & Information industry.

( Industry Median: 2.35 vs. GOOG: 4.47 )
GOOG' s 10-Year Current Ratio Range
Min: 3.5   Max: 14.97
Current: 4.47

3.5
14.97
Quick Ratio 4.46
GOOG's Quick Ratio is ranked higher than
89% of the 460 Companies
in the Global Internet Content & Information industry.

( Industry Median: 2.31 vs. GOOG: 4.46 )
GOOG' s 10-Year Quick Ratio Range
Min: 3.5   Max: 14.97
Current: 4.46

3.5
14.97

Valuation & Return

vs
industry
vs
history
Price/Net Cash 10.44
GOOG's Price/Net Cash is ranked higher than
87% of the 522 Companies
in the Global Internet Content & Information industry.

( Industry Median: 9999.00 vs. GOOG: 10.44 )
GOOG' s 10-Year Price/Net Cash Range
Min: 5.89   Max: 34.16
Current: 10.44

5.89
34.16
Price/Net Current Asset Value 8.84
GOOG's Price/Net Current Asset Value is ranked higher than
85% of the 522 Companies
in the Global Internet Content & Information industry.

( Industry Median: 9999.00 vs. GOOG: 8.84 )
GOOG' s 10-Year Price/Net Current Asset Value Range
Min: 5.25   Max: 30.23
Current: 8.84

5.25
30.23
Price/Tangible Book 4.68
GOOG's Price/Tangible Book is ranked higher than
75% of the 522 Companies
in the Global Internet Content & Information industry.

( Industry Median: 8.74 vs. GOOG: 4.68 )
GOOG' s 10-Year Price/Tangible Book Range
Min: 3.6   Max: 21.97
Current: 4.68

3.6
21.97
Price/DCF (Projected) 1.61
GOOG's Price/DCF (Projected) is ranked higher than
89% of the 522 Companies
in the Global Internet Content & Information industry.

( Industry Median: 9999.00 vs. GOOG: 1.61 )
GOOG' s 10-Year Price/DCF (Projected) Range
Min: 1.21   Max: 2.77
Current: 1.61

1.21
2.77
Price/Median PS Value 0.79
GOOG's Price/Median PS Value is ranked higher than
85% of the 522 Companies
in the Global Internet Content & Information industry.

( Industry Median: 1.07 vs. GOOG: 0.79 )
GOOG' s 10-Year Price/Median PS Value Range
Min: 0.68   Max: 2.89
Current: 0.79

0.68
2.89
Price/Peter Lynch Fair Value 1.84
GOOG's Price/Peter Lynch Fair Value is ranked higher than
93% of the 522 Companies
in the Global Internet Content & Information industry.

( Industry Median: 9999.00 vs. GOOG: 1.84 )
GOOG' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.77   Max: 2
Current: 1.84

0.77
2
Price/Graham Number 2.43
GOOG's Price/Graham Number is ranked higher than
84% of the 522 Companies
in the Global Internet Content & Information industry.

( Industry Median: 9999.00 vs. GOOG: 2.43 )
GOOG' s 10-Year Price/Graham Number Range
Min: 1.67   Max: 10.83
Current: 2.43

1.67
10.83
Earnings Yield (Greenblatt) 4.90
GOOG's Earnings Yield (Greenblatt) is ranked higher than
79% of the 463 Companies
in the Global Internet Content & Information industry.

( Industry Median: 2.40 vs. GOOG: 4.90 )
GOOG' s 10-Year Earnings Yield (Greenblatt) Range
Min: 1.2   Max: 9
Current: 4.9

1.2
9
Forward Rate of Return (Yacktman) 18.51
GOOG's Forward Rate of Return (Yacktman) is ranked higher than
77% of the 171 Companies
in the Global Internet Content & Information industry.

( Industry Median: 18.51 vs. GOOG: 18.51 )
GOOG' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 18.2   Max: 91.6
Current: 18.51

18.2
91.6

Business Description

Industry: Online Media » Internet Content & Information
Compare: » details
Traded in other countries:GOOG.Chile, GGQ1.Germany, GGQ7.Germany, GOOG34.Brazil, GOOGL.Mexico, GOOG.Mexico, GOOGL.Argentina, GOOGL.Chile, GOOGL.Switzerland,
Google Inc was incorporated in California on September 4, 1998 and reincorporated in Delaware in August 2003. The Company is a technology company engaged in improving the ways people connect with information. The Company's business is mainly around the following areas: search, display advertising, operating systems and platforms, enterprise and hardware products. The Company's search technologies sort through an ever-growing amount of information to deliver relevant and useful search results in response to user queries. It integrates features into its search service and offer specialized search services to help users tailor their search. In January 2012, the Company launched Search plus Your World. When a user performs a signed-in search on Google, the user's results page may include Google+ content from people that the user is close to. Relevant Google+ profiles and Google+ pages related to a specific topic or area of interest may also appear on a user's results page. Advertising includes Google Search, Google Display, Google Mobile and Google Local. AdWords is the Company's auction-based advertising program, which delivers advertisements that are relevant to search queries or Web content that they are a form of information in their own right. With AdWords, advertisers create text-based advertisements that then appear beside related search results or Web content on its Websites and on partner Websites in its Google Network, which is the network of third parties that use the Company's advertising programs to deliver relevant advertisements with their search results and content. The Company, along with Open Handset Alliance has developed Android mobile software platform that any developer can use to create applications for mobile devices and any handset manufacturer can install on a device. Google Chrome OS is an open source operating system with the Google Chrome Web browser as its foundation. The Chrome browser runs on Windows, Mac, and Linux computers. Google TV is a platform that enables the consumers the power to experience television and the Internet on a single screen, with the ability to search and find the content they want to watch. The Google TV platform is based on the Android operating system and runs the Google Chrome browser. Google's enterprise products provide Google technology for business settings. Through Google Apps, which includes Gmail, Google Docs, Google Calendar, and Google Sites, among other features, the Company provides hosted, Web-based applications that people can use on any device with a browser and an Internet connection. In addition, the Company provides its search technology for use within enterprises through the Google Search Appliance, on their public-facing sites with Google Site Search, and Google Commerce Search. The Company also provides versions of its Google Maps Application Programming Interface (API) for businesses, as well as Google Earth Enterprise (a behind-the-company-firewall softw
» More Articles for GOOG

Headlines

Articles On GuruFocus.com
The Top Tech Acquisitions That Created Vibes Dec 26 2014 
Investors Now Demand More Than Just Brokerage Services From Brokers Dec 24 2014 
Mobile And Cloud Are Going To Be Microsoft's Pillars For Success Dec 24 2014 
Facebook’s WhatsApp To Get An Upgrade Dec 24 2014 
The Best Tablets Launched In 2014 Were… Dec 24 2014 
Google Unwraps New Technology This Holiday Season Dec 23 2014 
Feeling Disappointed by BlackBerry’s 33% Revenue Drop? Here’s Why Not to Lose Faith Dec 21 2014 
Google’s Upcoming Android Technology To Lure Car Buyers Dec 19 2014 
Micromax Launches Its Flagship Yu Smartphone In India Dec 18 2014 
J.P. Morgan Remains Bullish on Facebook and Google Dec 17 2014 

More From Our Partners
Bear of the Day: Yandex (YNDX) - Bear of the Day Dec 19 2014 - ZACKS

More From Other Websites
Samsung's Plan To Replace Android Has Hit A Snag, And Now Things Are Looking Bad For Next Year Dec 27 2014
15 fabulous Fortune reads from 2014 Dec 27 2014
The 5 Most Important Nasdaq Companies Dec 27 2014
‘The Interview': Why did Apple stay on the sidelines? Dec 27 2014
5 apps for spying on your spouse Dec 27 2014
YouTube Goes Beyond Cat Videos With ‘The Interview’ Dec 27 2014
The Top Court Cases of 2014 Dec 26 2014
PlayStation, Xbox hacked Dec 26 2014
Sony's 'The Interview' is a big draw on Christmas, aims for streaming riches Dec 26 2014
'The Interview' gains patriots' support Dec 26 2014
Power Pitch: Gaming for cash Dec 26 2014
Debate: Big Blue past its prime? Dec 26 2014
Sarat Sethi's 2015 tech picks Dec 26 2014
Google & Microsoft take on Marriott Dec 26 2014
10 things not to buy in 2015 Dec 26 2014
2014 was the year that all predictions were wrong Dec 26 2014
'The Interview' publicity drove demand: Swisher Dec 26 2014
Heads up: Your real estate sale prices will no longer be secret Dec 26 2014
3 Reasons Why The Auto Industry Should Be Terrified Of The Google Car Dec 26 2014
Uh-Oh, Microsoft: Chromebooks Were The Best-Selling Computers On Amazon For The Second Holiday In A... Dec 26 2014

Personalized Checklist

Checklist has been moved to "Checklist" tab.

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