The company's Frankfurt-listed shares were trading down about 9 percent on Friday morning, a day after Google said its fourth-quarter revenue and earnings were hit by a decline in cost-per-click growth and forex fluctuations.
Analysts at J.P. Morgan Securities, Barclays Capital and Robert W. Baird & Co, however, said Google's core results were solid as paid click growth accelerated, margins improved, and display and mobile businesses continued to perform well.
"The acceleration in paid clicks suggests to us that underlying demand for Google ads is quite healthy across devices," wrote JP Morgan analysts, who cut their price target on the stock to $686 from $730.
Barclays raised concerns about investment spending at Google stock -- which is increasingly investing in mobile and social networking initiatives to stave off competition from rivals Apple Inc and Facebook.
The brokerage said it still sees Google as best-positioned for the shift to new media due to its dominant position in search, strong exposure to mobile, and increased traction with its display initiatives.
"With the exception of Germany, trends in most world regions and verticals remained broadly stable, which gives us further confidence in the underlying growth trajectory," wrote Barclays analysts, who lowered their price target on the stock to $700 from $730.
Analysts at Barclays, Baird and JP Morgan maintained their top ratings on the stock. For the latest updates on the stock market, visit Stock Market Today For the latest updates PRESS CTR + D or visit Stock Market news Today
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