Here's What Wall Street Is Saying About That Big Google Earnings Beat
Summary
After the bell yesterday, Google unveiled earnings that topped analysts’ estimates, sending shares up as much as 14 percent in late trading on investor optimism that the Internet search giant can keep costs in check. Googles second-quarter profit before certain items was $6.99 a share, and sales, minus revenue passed on to partners, rose 13 percent to $14.4 billion. We’ve long held that innovation is alive and well, and the narratives around irrelevance in mobile or share loss to FB that weighed on the multiple were somewhat misguided. Cowen and Co.s John Blackledge, Thomas Champion, and Nick Yako (price target raised to $775 from $693) Heading into Google’s 2Q results, we believe investors were looking for three things, solid revenue, improving margins and positive commentary from new CFO Ruth Porat. Aside from the expense focus largely talked about in the beginning of the week, Google highlighted two other important data points that helped to address previous investor concerns.