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Analysts Discuss What's Coming with Internet Company Earnings

Monday, 16 Jul 2007 | 3:26 PM ET

With Internet businesses set to report earnings this week, two analysts joined "Power Lunch" to discuss the likely performance of big names in the sector.

Martin Pyykkonen, senior media & Internet analyst at Global Crown Capital, estimated 8% revenue growth for Google.

Piper Jaffray Senior Research Analyst Gene Munster agreed, saying the Google's DoubleClick initiative is likely to yield sales growth for the company. Google acquired DoubleClick in April, giving it the ability to track consumers' Internet searches and Web site visits.

"Ultimately, we think that Google and Double Click, in 2008 and 2009, is going to redefine Internet advertising," Munster said. "This is really going to change the game for display advertising."

Tech Panel
The biggest names in Internet search are reporting their Q2 earnings this week, with Gene Munster, Piper Jaffray sr. research analyst; Martin Pyykkonen, Global Crown Capital sr. internet media analyst; and CNBC's Sue Herera

Another company on the market's radar is Yahoo, though both analysts said it may not post high earnings.

"I think the real key there is whether there is any evidence of Panama in the second-quarter numbers, giving them a little bit of a boost," said Pyykkonen, referring to Yahoo's "Panama" advertising system upgrade, which is designed to rank search-engine ads and yield higher click-through rates.

As for eBay, Pyykkonen is neutral, though he said the online auctioneer needs to "reenergize and regenerate some growth in the U.S. market."

Munster has an outperform rating on Chinese search engine Baidu, as it had a huge run last quarter.

"This is probably a stock [where] everything, fundamentally, is going great, but the stock probably needs to pull back," he said.

  Price   Change %Change
EBAY
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YHOO
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BIDU
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GOOGL
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  • Sue Herera is a founding member of CNBC, helping to launch the network in 1989. She is co-anchor of "Power Lunch."

  • Tyler Mathisen co-anchors CNBC's "Power Lunch." Mathisen also co-anchors "Nightly Business Report produced by CNBC."

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Kenny Polcari