SAN FRANCISCO, Oct 16 (Reuters) - Google Inc reported stronger-than-expected quarterly earnings, showing it can withstand the deepening economic turmoil, and sending its shares up about 9 percent.
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COMMENTARY:
"It´s a nice clean quarter. In this environment, it´s enough to send the stock zooming in the after-hours. It´s the power of the model -- paid search is the best form of media advertising out there."
"Even in a down market, advertisers are going to be seeking customers. These results separate out Google from the eBays and the Yahoos in the space."
GREG WOODARD, PORTFOLIO STRATEGIST, MANNING & NAPIER
ADVISORS IN FAIRPORT, NEW YORK
"Obviously investors will be very happy with the earnings per share. The whisper number was around $4.60, I think the general consensus was that they were going to miss, so it´s certainly an upside surprise."
"Going forward, I think there´s too much pessimism baked in with this market environment to see shares rise much. The highest quality names are getting sold first and are seeing some of the biggest losses. Google we´d quantify as being in a great competitive position, with gaining market share in the U.S. and overseas and in terms of being a dominant player in the industry globally."
"While it won´t be immune from the economic downturn, the valuation is very competitive, and at the same time, Yahoo, its biggest competitor, is struggling. So from a competitive stance, they´re great. And the business model will remain intact after we exit the credit crisis."
"All would indicate that people will continue to see the secular shift of advertising to the online venues so we would continue to monitor that going forward. As I mentioned, they won´t be immune to the economic downturn but I think they´ll emerge strong." (Reporting by Alexandria Sage in Los Angeles and Ryan Vlastelica in New York, compiled by Tiffany Wu)
You only learn who has been swimming naked when the tide goes out - W.Buffett