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  • Google free cash flow at new highs, valuation attractive

    Yahoo Finance at Hot Stock Minute3 days ago

    Looking back, I titled my last quarterly write-up of the  Google  numbers ‘ Still a strong theme stock in today’s lower growth world ' and my instinct remains that this is the case.

    Certainly the immediate market reaction was a bit mixed and when I last looked the stock had traded down in after hours trading. Looking at the core numbers however it is hard to see why.  Paid clicks were at an aggregated 18 month low but…

    …when you combine with the costs-per-click where compression continued apace you are left with a net growth (17% plus -2%) of 15% which as a core growth figure is  pretty damn reasonable .  

    Of course there are other variables to think about after all diluted EPS (below) looked not very pretty at all. The clue though is centred on the GAAP and non-GAAP number differences… 

    …because looking in the appendix of the release the influence of stock-based compensation factors, impairment charges related to Motorola and other discontinued items becomes apparent.  

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