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BGC Financial senior technology analyst Collin Gillis on whether you should invest in Google and Apple.
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-- thank you.
Google is out with strong fourth quarter earnings but still struggling with Motorola unit.
And we're getting apple after the -- that so should you invest -- these tech titans now.
Colin Gillis of BGC financial is here with us his take.
What do you think of Google's earnings if -- it there are a lot of improving metrics but it's not all rosy and we -- to break it down -- look at Google's core business.
It's actually still slowing down from 18% -- -- -- -- basis.
And that's not not 28 to 32% range that you know it it's 18% growth is still great Google is one of the better tech companies out there.
But when you see slowing growth in its -- yet be a little concerned.
And also the click metrics that got people you know excited came a little better than expected but it was still a pricing decline.
People are still paying less for Google plex and they've done this now for five quarters and it's just at that 24% increase in the number of clicks as -- of course wipes out.
You know that that the lower prices as they move through to mobile they got a 90% share mobile they have no choice but it to go after that that you put a hold on Google in this summary of told me.
Google's up 15% the past six months three wrong idealistic Google performing in line with the indexes and and we think -- -- continue to perform in line with the index is right and when you look out product technology universe we don't -- love everything right with the Google still has some struggles.
That is going to be facing it kinds -- -- better second half.
Your stock but still working through Motorola December quarters Google's quarter to sign right.
When you get into the first half right you still have to work that moral expense.
And we may not see click pricing rebound like analysts expect I still don't quite get why they strayed from their core business of advertising to buy a mobile phone maker Motorola without a bad deal to do if -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Did they really.
Need to spend twelve and a half billion dollars for Motorola and you know a company that that's losing money and has been a drag on the let's look kind of special -- -- -- but that also you're competing against the other mobile phone makers that you need to do deals with when your Google.
Now let's let let's move over to apple because.
Google stock up 15% the past six months there Apple's stock down 17%.
In the past six months you put a hold on the company at the started 2012.
What do you think we're gonna see from today yeah admitted obviously it's a very tense quarter.
And -- the tough part about apple right on net estimating 49 million iphones that's a stunning number I guess record profitability -- And yet I would like -- it's not fifty million of stocks going yeah.
And that's because just you know but yeah absolute valuation is so large this is a come this close to half a trillion valuation.
The largest US listed out company on -- the largest company -- on any US exchange and you when you're in a market as intense as the Smartphone market you don't want to have price competition ball players like Google who are willing to sell.
Act costs threat or a loss in order to get market share iPhone 5 could be built with Ben that -- -- that stock up -- down now.
Two schools of thought -- thought says they have cut back on screen orders all my gosh iPhone by doing badly.
But another schools is actually another switching suppliers to a newer type a screen yeah that's what it is -- which -- you come down on you know so I do think -- -- -- see a slowing in the march quarter ideas.
I think you're gonna see a compression.
-- demand for these new product launches and the concern is not also what the numbers are that come out for the what the outlook is going to be for the march quarter.
But you know we're gonna look at the gross margins and see how they do we're gonna look at the average selling prices and see if they're declining we're gonna look at the units and see if there's any other -- -- -- -- -- right.
Valuation is reasonable odds ratio bases and laughter why you have a hold on both -- which one is the better buy right now so we got more upside to apple -- that's all right thank you very much good job dollar Dallas appreciate it.
