Thursday, April 16, 2009

Google Earnings Report a Blowout?

Is Google About to Blow Out Earnings? As many of you know who have read my postings in the past, I am a huge fan of Google. Today at a little after 4 pm est they will announce their 2009 Quarter 4 earnings. The analysts have estimated that Google will report earnings of $4.93 per share on Revenue of 4.08 Billion. Whether they beat those estimates or not doesn't really have me too concerned, being a long term shareholder. I own quite a bit of stock, and thought that, today on Googles BIG day I would go over a few of the reasons I think they will continue to grow at a rapid pace:

  1. They are Entering the Mobile Market with a fury. In less than a year since they launched their Android mobile phone operating system, they have already taken over 5% of the worlds market share. With Mobile advertising expected to be in the $10 billion plus range by 2012, this will ad an incredible amount of revenue for the company.
  2. Google knows all. They really do. They have access to so much information that they can predict trends before anyone else. This will allow them to have the first mover advantage in a variety of fields. They can predict much better then anyone else what people will do, what they like, etc. This is be a huge advantage when they start investing into the Google Venture Capital operation.
  3. Android Expansion? Yep, there is already talk of the first nonsmartphone Android platform, a netbook which runs on the Operating system. Whats next, a full fledged desktop OS? That's pretty clear to me. They are taking on Microsoft in just abotu every area.
I don't know if Google will blow out earnings, but they did cut back costs significantly last quarter. They also took quite a bit of market share, and were probably the beneficiaries of people being stuck at hoem without a job, using their search engine. I do also think Youtube will be much more lucrative on this earnings report then the last few.

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