Saturday, December 26, 2009, 12:05PM ET - U.S. Markets Closed.

Google Is Back!: With or Without the Android

Posted Oct 07, 2009 09:54am EDT by Peter Gorenstein in Investing, Computers, Electronics, Media, Products and Trends, Mobile

Goggle's back in familiar territory. The stock is trading near $500 a share, nearly doubling since plummeting with the rest of the market last December.

As you'd expect, the comeback is built on the resurgence of its search business. Colin Gillis, an analyst with Brigantine Advisors, writes in his latest research report: "The key metric for us is rising CPC (cost-per-click) showing a willingness for advertisers to pay more to reach consumers -- and an indication that clicks are translating into sales … . A combination of paid click growth and a lift in CPC is the formula that drives upside in revenue and the GOOG share price."

Speaking of share price, Gillis has a $600 price target and a buy rating on the stock.

But as Henry Blodget points out in the accompanying clip, if Google wants to grow in the next decade as fast as it did in the last, the company must find its next multibillion-dollar business.

Is the mobile platform Android the answer? Gillis says it's by no means the answer to the iPhone yet. However, after a lackluster launch, Gillis says it has been "quietly successful."  And, that success should grow thanks to the new deal Google signed with Verizon. Gillis expects "up to 18 Android based phones across the world by year end -- including close to 10 in the U.S. across three major carriers."

Is he right?  We'll find out more when Google announces quarterly earnings next Thursday, Oct. 15.

38 Comments

__A_YAHOO_USER__
__A_YAHOO_USER__ - Wednesday October 07, 2009 10:09AM EDT

Uh, this guy collin talks like he's got something in his mouth. Spit out your gum before you start talking on TV. http://inpencilmusic.com

Tex
Tex - Wednesday October 07, 2009 10:15AM EDT

Why doesn't GOOG split so more of us can participate in it's growth?

HNG
HNG - Wednesday October 07, 2009 10:20AM EDT

does this guy has big googles balls in his mouth?....

frankmargel.com
frankmargel.com - Wednesday October 07, 2009 10:25AM EDT

Hey Gang! Do you remember the king of transports? The days of internet transport and clicks are guided by Google. Competition for Google market share in the long run will be fierce! Look for mergers and acquisitions and regulatory reforms to eventually slow down the giant that is Google. Google looks and smells great in the long term play here as it will take years to stifle its growth. Perhaps Google will always trade above the fray no matter what happens to the real world. Perhaps not...Later Gang...Smiles...Good luck today!

taopraxis
taopraxis - Wednesday October 07, 2009 10:33AM EDT

To Wall Street: In the interest of the millions of Americans who have been rendered unemployed, homeless, and destitute by the New War Depression economy, I have a suggestion: Give up the idea that you're going to draw vast numbers of new suckers into the market. There is simply not enough money in sucker hands to absorb all of that paper. So, learn how to eat paper and like it. Instead of naming your trading companies after raptors and other predators, may I suggest naming them after lower order creatures, e.g., silverfish, termites, slugs, or leeches.

Yahoo! Finance User
Yahoo! Finance User - Wednesday October 07, 2009 10:52AM EDT

Taopraxis......I'm struggling to think of a firm name after some sort of predator......Cerberus? That's about all I can think of.

Yahoo! Finance User
Yahoo! Finance User - Wednesday October 07, 2009 10:53AM EDT

come on.. we are in PROSPERITY.. everyone had a green or shovel ready job.. obama saved us from the brink of depression mmm mmm mmm and brought us back to the GLORY days mmm mmm mmm We are in V recovery now.. housing is back.. buy buy buy and flip the properties... mmm mmm mmm ye of little faith, believe in obama, trust obama he is good he is great mmm mmm mmm All stocks are up up up...

Rey
Rey - Wednesday October 07, 2009 10:55AM EDT

Kick the android in the rear

Robert
Robert - Wednesday October 07, 2009 10:58AM EDT

Too much Spam on this Tech Ticker, No real info posted here anymore, Bummer. Clean up your act Yahoo.

former RadioShack victim
former RadioShack victim - Wednesday October 07, 2009 11:02AM EDT

BTW, whatever happened Sara Lacy? I loved her;) Very intelligent woman and very sexy:)

Yahoo! Finance User
Yahoo! Finance User - Wednesday October 07, 2009 11:03AM EDT

Taopraxis....How bout CrackRock, continuing the destitute and unemployed, living in a foreclosed house theme. BlackRock was already taken.

taopraxis
taopraxis - Wednesday October 07, 2009 11:06AM EDT

In my opinion, the most important thing to understand about the financial crisis is that, contrary to the views of many conspiracy theorists out there, it was not intentional. It was an accident, born of a combination of hubris, complacency, and ineptitude. The upper crust have money and power, but many attained these things via a system of nepotism. Merit played little role. Not a few are literally morons. Thus, they cannot read the handwriting on Wall St., even after everything that has transpired. Plan A, the monetary "Pump and Dump" is all they have....there is no Plan B, i.e., exit plan.

Johnathon
Johnathon - Wednesday October 07, 2009 11:07AM EDT

Tex: Google doesn't split by design. The intent is to encourage long-term investment and limit volitility of share-price as much as possible. I'm not really sure why share-price is a prohibitive issue for you though? Why are 5 shares at $100 each or 10 shares at $50 apiece more reasonable than 1 share at $500. If you cannot afford full-shares, check out a place like www.sharebuilder.com where you can purchase partial shares. Though personally, if you cannot afford something, then you cannot afford it, and you'd be better off buying into a mutual fund that is heavily invested in Google. Something like CGFEX might be up your alley. That said, Google trades at a premium as it is, it still hasn't found a way to make money outside of Ads, and its future is tied to the Cloud. If I'm betting on the Cloud, I think that you can get ample long-term exposure through a stock like ATT. If you're looking for stable exposure with moderate growth, Oracle and Salesforce may be better fits.

Cynthia
Cynthia - Wednesday October 07, 2009 11:12AM EDT

i wish google well with android and there developing os.

Yahoo! Finance User
Yahoo! Finance User - Wednesday October 07, 2009 11:14AM EDT

Taopraxis....Even if the crisis was not intentional, it was used as a pretext to reduce staffs and squeeze more productivity out of those 'lucky' enough to remain, and the data reflect this. The result was lower margins for now, but a new 'normal' in terms of relations between labor and management.

taopraxis
taopraxis - Wednesday October 07, 2009 11:16AM EDT

Note the crickets chirping? A huge rally in the stock market off the lows, but where's the excitement? Even the trader/gambler types appear to be missing, which suggests they're either out or short, now. The suckers are totally missing in action. Wall Street is bagged. Just my opinion.

Yahoo! Finance User
Yahoo! Finance User - Wednesday October 07, 2009 11:20AM EDT

I hope the android is invested in gold.

__A_YAHOO_USER__
__A_YAHOO_USER__ - Wednesday October 07, 2009 11:22AM EDT

As a user, I was slow to get to the Google party. I considered Google mostly about search engines and I preferred Ask Jeeves, now Ask, as my main engine. What made me take a second look was all the buzz about the Chrome browser. But Because Chrome was so new I went with FireFox, but in my looking I found so much more of what Google had to offer and WOW! Now I understand what they mean when they say Google is the 600 pound gorilla. It's a vast storehouse of Great stuff for the end user from, iGoogle, Notebook, Google Docs, to that excellent Google Reader! and so much more I haven't even explored yet. Oh well, better late than never. Regards Sedan2 http://sedan2.blujay.com/

--
-- - Wednesday October 07, 2009 11:23AM EDT

Whatever.

taopraxis
taopraxis - Wednesday October 07, 2009 11:27AM EDT

Cost cutting alone will not save the system. The problem is not labor, it is government overhead, debt service costs, and a shrinking market/middle class. The entire corporative state economy must be restructured or it will bleed to death over the next few years. The country has been turned into a kind of family business which is now being ruined by placing wasteful and incompetent heirs in upper management. America is going bankrupt. It needs a turnaround specialist.

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