Wednesday, March 6, 2013

GOOG: Google Still Offers Reasonable Value But Only For Long-Term Investors

Google Still Offers Reasonable Value But Only For Long-Term Investors
by Tim Travis

With all of the hysteria surrounding the decline of Apple's (AAPL) stock price, there has been slightly less media attention regarding the continued ascension of Google's (GOOG) stock price. Google's stock has staged a nearly 51% climb from its 52 week low of $556.52, to a recent high of $840.15. We profiled the stock bullishly on two occasions near the lows, because the market clearly wasn't appreciating Google's durable competitive advantages that are likely to lead to a reasonably long runway of above-average revenue and earnings growth. Google to me is the preeminent advertising company in the world, leveraging its role as the primary focus of corporate advertising budgets to leverage incredible technological innovation on a scale that has little precedence. The biggest risk to the company's moat occurred on the transition to mobile advertising, but the company was a first-mover in that market, willing to lose money over the short-term to build incredible value over the long-term. For these reasons Google is the technology business that I'd most love to own for future profits, but I'd only suggest holding the stock at current prices if you are a true buy and hold investor, willing to endure a potential 30-40% sell-off. To be clear I am not forecasting this type of decline for Google, but investors buying at these prices are likely to be momentum investors, that tend to jump off the bandwagon based on price movement, as opposed to changes in the fundamentals. read more »

Get Seeking Alpha notifications with our iPhone App | Android App

More on GOOG

Google Needs The Swagger Of A Boss by Benedict Tubuo (Beevest)

Google's Chromebook And Why It WIll Keep Selling by Vlad Deshkovich

Google Is Bargain Priced by George Acs

Other articles that mention GOOG

Facebook Worth $35 by Ryan Perlowin

Facebook, Google And Yahoo: Take The Road Less Traveled by Timing Best Buy

BlackBerry 10 And The Battle Of The Network Mobile Operating Systems by Thomas Barnard


Why are you receiving this? You subscribed to real-time article alerts at Seeking Alpha.
If this email was forwarded to you and you wish to subscribe to this email, click here.

Manage your emails:
Get alerts on additional tickers and manage all your email alert choices here
I'm getting too many emails: manage your email alert choices
I'm no longer following GOOG: unsubscribe from all GOOG email alerts
This type of alert isn't helpful to me: unsubscribe from article alerts on GOOG

To ensure you receive these emails in the future, please add account@seekingalpha.com to your address book, contacts or list of safe senders.

Sent by Seeking Alpha, 345 7th Ave. Suite 1400 New York, NY 10001

No comments:

Post a Comment