# The SBHonline Community Daily > Digerati Discussions! >  >  GOOG

## JEK

Google Hits All Time High on Earnings Beat: What Wall Street's Saying


Chris Ciaccia
10/18/13 - 08:44 AM EDT
NEW YORK (TheStreet) -- Google (GOOG) blew out its third-quarter earnings estimates, as the Internet search giant shows paid click volumes aren't slowing down anytime soon.


Paid clicks -- which include clicks related to ads served on Google sites and the sites of Network members, soared, rising approximately 26% year-over-year and 8% sequentially. That helped the company generate $10.74 per share in earnings on $11.93 billion in revenue, excluding traffic acquisition costs (TAC). Analysts surveyed by Thomson Reuters expected Google to earn $10.34 per share on $14.79 billion in revenue, including TAC, during the quarter.


On the company conference call, which may be CEO Larry Page's last for a while, *Google noted that YouTube is now a mobile behemoth, seeing almost 40% of its traffic coming from mobile devices. That's up from 6% just two years ago, as people watch more and more video on their mobile devices.*


Google touched on Enhanced Campaigns, its initiative to have advertisers buy advertising catered towards multi-screen experiences, as opposed to buying separately for desktop and mobile. Nikesh Arora, Google's Senior Vice President and Chief Business Officer, said Enhanced Campaigns are seeing "great progress," but did not give anything quantitative on it. This comes as cost-per-click (CPC), a key advertising metric, continued to trend lower. CPC fell 8% year-over-year, and 4% sequentially.


Shares surged, hitting an all-time high following the report and conference call, tacking on 9.9% to $976.70 in early Friday trading. Analysts across Wall Street were sharply raising price targets on the Internet giant. Here's what a few of them had to say.


Jefferies analyst Brian Pitz (Buy, $1,150 PT)


"We see three reasons why GOOG remains a must-own stock: 1) YouTube is best positioned vs. large online video oppty including TV budgets shifting online; 2) Enhanced Campaigns means marketers can easily run multi-screen ad campaigns (PC, tablet, mobile) - a key advantage for GOOG; 3) GOOG is best positioned in mobile with 1B Android activations, and should benefit as CPCs rise."


Canaccord Genuity analyst Michael Graham (Buy, $1,000 PT)


"Google reported solid Q3 results that beat consensus for revenue and EPS by a few percent despite intra-quarter concerns that the rollout of Enhanced Campaigns would negatively impact advertiser behavior in the quarter. Websites revenue growth accelerated despite continued CPC shrinkage and made up for a big deceleration in Network revenue. With many investors already expecting a strong Q4 from EC impact, getting past this potentially bumpy Q3 with a solid set of results should allow the stock to work well through year-end."


JPMorgan analyst Doug Anmuth (Overweight, $1,100 PT)


"Google reported better than expected 3Q results as strength in Google Sites and International drove Google Segment net revenue 2.3% above our estimate and led to Google's first consensus revenue beat in 8 quarters. Enhanced Campaigns does not appear to have had a material impact on 3Q results either way, but we believe it represents a major opportunity going forward as usage pushes toward mobile and advertisers increasingly utilize bid modifiers and cross-device analytics."


Cantor Fitzgerald analyst Youssef Squali (Buy, $1,175 PT)


"We are reiterating our BUY rating and raising our PT to $1,175 on GOOG after solid 3Q:13 results and prospects for continued strength. Core Google segment revenues maintained an impressive +19% Y/Y growth rate, driven by strength in paid clicks, international and YouTube, despite headwinds from lower network revenues, lower CPCs and increased investments. Google remains one of the best plays on growth in online advertising at a valuation we still find compelling, in our view."


--Written by Chris Ciaccia in New York


>Contact by Email.

----------


## MIke R

threw a bunch of shares in my IRA in 04 @ 129 a share....

this retirement money management thing is too easy....why would anyone want to hire someone for that????.. :cool:

----------


## Voosh

> this retirement money management thing is too easy....why would anyone want to hire someone for that????..




 :thumb up:   :tongue:  [Disclaimer: This may not hold true for all. I have _some_ background in financial shenanigans.] Greatest way to get some of my investment management friends' (two are part of our SBH travel clan) dander up is to ask why anyone would p*ss away a percentage of their retirement stash *and* a portion of their annual gains to someone whose record of big gains and big losses is no different from my own personal stumblings through the investment swamp. Truly an amusing site in the ambiance of an SBH resto to see these seasoned pros fuming, choking on their pate and brie, snorting their wine out their noses and trying to attack me with a baguette.  :Devilish:

----------


## JEK

Buy low sell high. How hard can it be?

----------


## Voosh

Actually... more often feels like "what's behind door #1, door #2 and door #3?" - even for the pros. IMHO.

----------


## JEK

When I bought FB at IPO I wondered about those doors  :cool:

----------


## Voosh

IPOs can be funny things. Remember Webvan, pets.com, etoys, Dr.Koop, Vonage... Also, getting stuck with a batch of pre-IPO "friends and family" stock and trying to dispose of it when the IPO is sinking and you are confronted with SEC's Rule 144 is a joy to experience.

----------


## george

Cashin: Tech valuations remind me of dot-com bubble:
http://www.cnbc.com/id/101122296

----------


## JEK

Yep. Been there on a list-IPO lockup and watched people who were no longer with the company cash in at $100 while the
 rest of us watched it sink back to $30.

----------


## MIke R

Voosh...I have two words for you....stop/loss....I have an automatic triggered stop/loss sale order on every stock I own....total protection and the level of risk you want to take in setting the stop loss is completely up to you....yet another reason to manage your own money and not depend on someone else to have your back

----------


## JEK

Doesn't work on F&F IPOs.

----------


## MIke R

I know ..thats why i stay away.. and wait for all the restrictions to go away

----------


## Rosemary

> Buy low sell high. How hard can it be?



What could possibly go wrong?

----------


## Voosh

> What could possibly go wrong?



Whenever possible, I try not to deal with the market when I'm high.  :tongue:  

Mike - that's certainly a very prudent, advisable approach. But as JEK said, any restricted stock is just that - restricted. Sometimes  "gifts" just fall in your lap and ya roll with it. Thankfully, I've been mostly lucky with those. The instances where I have shunned stop/loss and followed my gut have left me sometimes ecstatic and sometimes deeply scarred. My choice.

----------


## Voosh

> Cashin: Tech valuations remind me of dot-com bubble:
> http://www.cnbc.com/id/101122296



Yup. Unless ya have the stomach for it and cash to burn or are a lemming - step back, take a deep breath and check the weather first.

----------


## Grey

> Buy low sell high. How hard can it be?



 No need for stop-loss then, I suppose.

----------


## JEK

The real trick is to pick ones that only go up. Then it's just how much you can handle in cap gains.

----------


## Voosh

> Then it's just how much you can handle in cap gains.



That's when you learn the next trick - finding various offsetting liabilities to negate the gains (on paper) without hurting your cash stash.  :tongue:

----------


## MIke R

> No need for stop-loss then, I suppose.




absolutely not true...the day you trust the market is the day you start to lose money....

----------


## MIke R

Voosh..stop losses take much of the risk out of the market......you come out of severe irrational market fluctuations with minimum exposure and damage.....and if your stop losses are tight enough you can actually re enter at a better position and make money from a meltdown....you can smell the wealth being created during a meltdown sell off..

but it only works for you if you are constantly adjusting your stop/loss numbers..otherwise dont bother with it

this aint brain surgery

----------


## MIke R

> That's when you learn the next trick - finding various offsetting liabilities to negate the gains (on paper) without hurting your cash stash.




not if its tied into retirement

----------


## Voosh

A thought to always keep in the back of your mind is that its legalized gambling and unless you're calm, clever and/or lucky, the odds are against you winning big. But what the heck, let's privatize social security and get rid of any semblance of reliable retirement plans. After all, it only *was* your money that you were smart enough to earn and then are willing to hand over to money magicians, no questions asked - there ain't no magic, there ain't no money tree, there ain't no guaranteed investment strategy. A little common sense and caution can go a long ways in preserving and comfortably (not wildly) growing your nest egg.

----------


## MIke R

I don't seeing it as gambling at all

I see it as nothing more than  a daily auction...a corrupt auction for sure......but an auction

common sense...due diligence..and disciplined buying and selling ...and anyone can make a few bucks

----------


## kent1994

It would be helpful if some of this wisdom was shared with the rest of us when we could use it, even I can tell you who won the Sunday games Monday morning.  :tongue:

----------


## MIke R

you don't need anyones"wisdom"......just put the time in..do the homework..and the rest will take care of itself

a monkey can do this

----------


## Voosh

I agree Mike. In the "old days," figuring out market stuff took hours in the library, buying books and trying to get free info from "knowledgeable" people or, worse, paying for often questionable advice often geared to profit the source. 

The pendulum has swung far to the other end. There is an astounding, often overwhelming, amount of info on the net. There are sites and blogs geared to anyone from the raw novice all the way up to the most arcane, advanced levels. Lots of junk, too. Weeding through the jungle might take some time but you can do it at your leisure and most likely will find what you want or get answers or pointers to where to look further. Yes, there are friendly blog sites out there where all investing questions are welcome, kinda like SBHOnline is for Saint Barts.

Rushing into important financial decisions is sometimes unavoidable. In most cases, the time taken to get even the most basic feel for what you want and how to get there will pay for itself manifold. Question everything. Relax and learn. Be realistic about goals and the means to achieve them *but* don't be afraid to explore and experiment. Unless there are unusual circumstances, never feel presured to "act right now." " Stop, look and listen"  not "Ready, fire, aim"

----------


## MIke R

you are so right Vooshie...there was a time when a select few had the information  and the ways and means.....and the rest of us had to pay for it...and pay dearly...

the internet has really leveled the playing field.....anyone with the time and the commitment can now easily and successfully manage their own money

money managers are going to go the way of travel agents some day

----------


## Voosh

Realistically, you can't always figure everything out yourself. There are times when outside, competent advice must be sought. That's when being informed and knowing what questions to ask is priceless.

----------


## JEK

And there investments that are not available to the eTrade world -- like IPOs.  Not to mention family office services. YMMV.

----------


## MIke R

want no part of IPOs....

----------


## Voosh

JEK, TWIS - "That's when being informed and knowing what questions to ask is priceless." :)

----------


## JEK

V,
I was addressing Mr. Travel agent. I still use them on complicated trips.

----------


## Voosh

D'accord. Knowing that you don't know and seeking help gets you through the swamps ya can't handle alone.

----------


## noel

> you don't need anyones"wisdom"......just put the time in..do the homework..and the rest will take care of itself
> 
> a monkey can do this




And they do!
I've seen the infomercials.

----------

