I am optimistic on Google (GOOG)

Posted on February 1, 2008
Filed Under finance |

Today, after the bell Google (GOOG) reported that its fourth-quarter earnings rose by 51 percent and it’s profit rose by 17 percent. YOu’d think that was great news, right? Wrong! In after hours trading, spooked investors punished the stock by selling off just for missing analyst consensus estimates by a couple of pennies. The stock was down about $40 in after hours trading, even though the CEO of Google remains optimistic about his company in 2008 and does not see any impacts of a slowing economy.

The only cautionary news Google gave was that it’s social networking inventory was not monetizing as well as it expected. With a market share of over 50% in the US and growing rapidly in the International market, could the prospects for Google be so bad that it deserves a huge selloff? I realize that people are scared that Google is investing billions of dollars into the wireless spectrum. I personally think that investment is going to pay off handsomely.

Well, I certainly am a long term believer in Google and I expect great things to come out of the company over the next few years. I see the stock sell off as an opportunity to grab a few Google shares at a bargain price. Google reached a high of over $745 per share this year and to be able to grab it in the low 500’s or maybe even high 400’s is tempting to me. What do you think about Google?

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