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GVA Reseach’s David Garrity, Zacks.com Senior Equities Strategist Jared Levy and FBN’s Shibani Joshi on Google’s second-quarter earnings report.
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Jump in the after hours structure body Joshi were breaking this -- a four parts.
It all centers around this twelve and at twelve and a half billion dollar purchase in May of Motorola mobility looks like it's so good so far anyway.
-- his dignity they only know that they knee jerk reactions can -- and have had to have the tendency to reverse themselves especially when they're so fresh after the numbers came out.
A couple of sort of seems that I'm seeing here paid clicks up 42%.
On a year over year basis that's -- stock investors are looking for the -- And I just -- -- right here for a second because it was expected to be -- 37%.
Increase in paid click.
That is a big jump from what they were expect.
And that's what I think investors are reacting to we know the numbers are a little bit messy because of Motorola Motorola mobility but I think what -- needed -- to this street is that.
The -- in 90% of its revenues really come more than 90% come from ads.
And generating ads and so what it needed to prove is that it still has growth and momentum in this arena.
And that's exactly what it did with that paid clicks number we're still looking to -- but apparently.
Investors initially happy with the news so far.
-- very happy yes let's bring in David Garrity of GPA researcher David let me just give you one headline here that I'm seeing that the GAAP operating income for Google was 3.4 four billion.
31% of Google's revenues in Q2 looking at these numbers and what you've heard looks like a win here -- time.
Very much -- went on the upside and certainly with the paid click growth being about five percentage points higher than -- -- expecting mean certainly it's a number here -- despite all the concerns about the macro economy.
Around the world Google as the leading search franchises -- powering growth here.
And from that standpoint and we saw an upside surprise on the revenue line.
We may not have had the margin expansion in the search business people might have been hoping for.
But I think at the end of the day investors obvious your bidding -- the stock at during the market and I think did with the expectations the stock had pulled back you know almost twice as much as NASDAQ -- to do we type.
We have a stock here -- set to rally not only after hours but also tomorrow you know 97%.
Of its revenues come from its advertise the core search engine advertising so -- -- too much focus on what's happened Motorola.
Well -- -- -- is to say that you know Google's one trick pony but we will trick -- it's working as wells Google's search engine business all by that all day long.
-- by the -- have thought that it's been undervalued for quite some time is it isn't about properly valued at 612 which is the after hours price now -- price objective -- 650 dollars over the next twelve obviously there's more upside we have the -- the conference call says in terms of the dynamics of the business.
Looking out of the second half of them.
A trader reaction Jared Levy smack in the middle of the pits at the CME and we're looking at a stock that is up more than 2% right now in the aftermarket session.
-- paid clicks up 42% but price cost per click rather cost per click down 16%.
What do you make of these numbers.
Yeah I think this is more about control and I think that's for the Motorola mobility acquisition plays in remember.
-- Google's the big boys in this sector right Yahoo!'s doing what they can't take drastic steps trying to capture about what they've lost listen.
Google's got it.
People wanna see the volume the cost they're gonna eventually come down but we -- captured -- the -- they're they're number offensive quits and gone up -- envision moving in the right.
