Also in this playlist...
This transcript is automatically generated
And a Fox Business solar for you it's -- fifty dollars -- -- shares of Google at this hour after Larry Page delivers a rough report the stock down.
But -- percent after a rare quarterly miss for the Internet search giant revenue missing most analyst estimates including.
The targets a star analyst Maarten Haiti managing director at Citi investment research and he joins me right now mark thank you for joining me today on the heels of those reported.
I'm curious that it's still after the numbers you saw last night you still think today that the sell off in the stock is an overreaction.
Yeah I think it is the first Cheryl San Francisco will welcome you this weekend shift to a victory game.
And then now on on that on Google yeah we had a bit of an overreaction the look at mrs.
amiss they missed the bottom line by a buck now they're a lot of one time items in there but.
Now that's -- multiple stocks will double the stock multiples of that high but the bid this stock is should correct probably not by as much as it has.
But expectations were -- they weren't met stock comes down I think this is an end we think this is a good entry point but there are you know that is an overhang issue we always have to address when you have a -- -- your point but it still 587.
Dollars August August sicker shot but -- looked at a number like Alan but it was about click revenues.
The click the revenues that was down 8% and that seems to be what.
Analysts on the call may be including yourself why -- hearing on the call that.
That they really -- -- they were hitting Larry Page on a particular saying you know where you can this show growth in -- not -- -- click through advertising what do you think.
Yeah you know there's a lot of noise about these -- metric so that paid clicks grew in over 30% year over year but -- -- amount of revenue they generate per click fell year over year.
There's a couple of key factors variables in this and one is that people are doing more searches off mobile devices and right now.
They generate may be half as much revenue awful mobile searches they do -- a PC search.
But over time that's gonna normalize -- you will have mobile.
Monetization rise of the PC monetization such as the transition issue the other thing is the company is trying to.
Clean up the search results are trying to get rid -- -- -- bidding arbitrage search players and bring in now more up authentic it's -- -- ad buyers.
That's actually a good thing for users it's a good thing for most advertisers and will normalize -- that you still have a 20% plus organic revenue grower with Google that's why we like the stuff ever talked.
About search and with regards to search share if you look at them vs the competition.
Which is Microsoft -- -- which is Yahoo! minute Google still has 65% share at this point.
But overlaying that is of Kahane minute comment today he -- look this company is not invincible.
Oh yeah no it -- government's right on that they're not.
I think that the thing we -- to focus on here with Google is the core PC search business continues to take share modestly but they continue to take share.
It still got relatively robust growth but you've got two new kickers coming in mobile although monetization needs to improve but mobile is triple digit -- for this company.
And so was display advertising which includes that YouTube asset and combine those are about 25%.
They will be by the end of 2012 of this company's total ad revenue.
It's a reason why it's very hard to see immaterial slowdown in the company's a growth rate -- work through the FX issues X setter and there is exposure here to Europe that was part of the softness in the quarter.
But if you work through that you've got a very high sustainable grower with Google you can get it at a reasonable valuation.
Let me talk about again saying honest this competition angle for just a second -- a -- and ask you about revenues in Europe but if you look.
At at Yahoo! and Amazon in particular maybe the two best examples of -- -- competing with.
Right now Yahoo! that stock is actually up 9% -- over -- right now and -- design is up nine point 6% so I'm wondering considering global sell off today.
And I know you covered these names do you think these names are showing promise now.
It we'd like Amazon but for separate reasons then a Google Yahoo!.
Yahoo! no I think that's a deteriorating.
Asset has been for some time -- needs management that's had a management shake up the needs of board shake up its in the process of going through that.
Actually the name you didn't mention is one I would -- which is FaceBook and if there's any.
Loss of market share here it is -- to Microsoft it is that the Yahoo! it's potentially -- -- and that risk is gonna get.
Amplified when and if FaceBook files for an IPO that is an overhang issue.
That we're worried about Ross -- about this Motorola integration that is that's a stretch of an acquisition for Google -- made to both of those are what are called near term overhang on the stock.
I still can't get over the fact that Netflix right -- -- is one of the top ten performers in the S&P 500 for 2012 so far does that surprise -- Yes it does I wish I'd put a -- buyout and at the bottom but that was a very hard things to do this was also one of the worst performers in the S&P 500 last year so you just got a little bit over reversion to the mean.
I trade going on it we still need to make sure that customer satisfaction at -- Netflix in the US market can improve again.
And we got to make sure that they can have this kind of success in international markets that they've had in the US there's not going to be proof of that probably for six or twelve months.
All right Maarten Haiti before I let you go roll quick Europe.
Google are you worried.
I think got two companies here eBay and Google.
Very large Internet bellwethers very large consumer discretionary bellwethers.
Both said they saw weakness in Germany non EUK but in Germany so companies with exposure to the German market.
There are probably seeing the same problems.
Mark -- Haney Citi Investment Research mark thank you very much one of the biggest.
Filter by section