Once the wildest dream of investors, it’s now less than 10% away. But, when will Google finally break the millennium mark?
Once the wildest dream of investors, it’s now less than 10% away. Since its IPO in 2004, the stock has increased nearly eight times its original value.
Google reports its quarterly numbers in just a couple of hours. Analysts are expecting revenues for the second quarter to come in at $14.42 billion with earnings per share at $10.78.
Investors are hoping for an upward surprise to push Google above $1,000. But, what are the odds Google will have good numbers?
According to Thomson Reuters I/B/E/S, 70% of companies have come in with higher-than-expected earnings so far this earnings season. And, close to half have come in with revenue higher than Wall Street estimates. However, when looking at just tech companies in the S&P 500 index, those companies have shown a decline in earnings by 3.2%.
Besides its most recent quarter, Google investors are also thinking about the future.
According to reports, Google is looking to acquire content from major media companies even though it already owns the most popular online video site in the world. Google’s YouTube property relies on user generated content uploaded and shared, creating such celebrities/memes as Keyboard Cat, Psy, David After Dentist, and Justin Bieber (in order of influence).
Still, recent media deals with rivals have turned up the heat for the Mountain View-based company. Last month, Amazon and Viacom inked a multiyear deal while Netflix snagged DreamWorks content. And, of course, there’s Apple, which is reportedly working on getting video viewers content without advertisement.
For the stock to hit $1,000 per share, owners of Google’s shares are hoping earnings are a hit and that it will succeed in streaming video content. (Watch videos on the Internet? Who would do that? Oh, right.)
Will Google finally break the millennium mark?
We ask Talking Numbers contributor Enis Taner, Global Macro Editor at RiskReversal.com, and CNBC contributor Abigail Doolittle, Technical Strategist at The Seaport Group, when – if at all – Google will see a comma in its price.
To hear what Taner and Doolittle think is next for Google, watch the video above.