| Stock (Symbol) | Stock Price | |
Google (GOOGL) |
$523 |
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| Data is as of | Expected to Report | Sector |
April 28, 2014 |
Jul 14 – Jul 18 |
Technology |
| Sharek’s Take | ||
 Google’s (GOOGL) almost $100 off its recent highs, but more of that can be attributed it to the stock market (and tech stocks) being in a correction. Google has a catalyst, and that catalyst is not having the money-pit Motorola Mobility on the books anymore. That plus normal business activity should push profits up 20% this year — probably more. The combination of better profits plus a higher P/E could push this stock up 50% over the next two years. Note the company split its stock and my investors with one share of GOOG with a cost basis of $1207 got one share of GOOG with a cost basis of $603 and one share of GOOGL at $605. GOOGL is where Thomson has this company’s data and I will continue to own that stock and sell GOOG. |
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| One-Year Chart | ||
 Here’s the one-year chart of Google. Profit growth the last year was hampered by Motorola Mobility, and now the profits are free to run. I think if the company delivers 30% growth next quarter that will turn heads and attract investors. |
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| Earnings Table | ||
 Google’s sales growth was only 10% last quarter, down from 29% two quarters ago, but these numbers are jaded because of Motorola. Theres’ a lot of numbers with GOOGL’s sales, but the company is growing 20% to 25%. Profit growth was only 8% last quarter, but that should bounce back.
The company beat by 12 cents but is notorious for either beating or missing by a lot. Annual Profit Estimates increased a bit, but were lowered a bit 2QtrsAgo. Quarterly estimates look solid, and that’s what I like about this report. |
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| Fair Value | ||
 There’s significant upside to 2015’s Fair Value — 51%. Google stock should be one of the stock market leaders over the next two years, and I think GOOGL’s growth will push the market higher. |
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| Ten-Year Chart | ||
 Since 2007 owning this stock has been like riding a mechanical bull. The hardest part has been the company missing estimates (causing me to sell) then beating them. Two years of only 10% profit growth shook out a lot of people (including me). In many ways this isn’t my type of stock. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
15 of 25 |
Google should have some good growth coming ahead, and the combination of this plus a higher P/E could make the stock rise 50% over the next two years. |
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Aggressive Growth Portfolio
N/A |
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