Investor Agenda

Stock Brawl: Google

Google Search

Do you Google ?

That's the company up for debate on our Stock Brawl today at 3:40PM ET on “Closing Bell.”

Since Google went public on August 27th, 2004 its shares have gained 361%. In the past 52-weeks, the stock is up more than 9%.

However, year-to-date Google shares are down 19%. With a market capitalization of $159 billion, it's one of the largest tech companies and most recognizable names on earth. (Get All Your Google News Here)

Our Google bear Porter Bibb, Managing Partner at MediaTech Capital Partners insists that Google faces many challenges. Meanwhile, Richard Fetyko is bullish and says, “buy, buy, buy.”

Google: Buy or Sell?

Let's start off with the good news.

Making Their Case: The Bull

Richard Fetyko, Managing Director/Internet Analyst, Merriman Curhan Ford

Fetyko says Google has seen reaccelerated growth in its second quarter earnings—the highest growth year-over-year on a relative basis. It experienced a 24% increase in revenue, from $5.52 billion to $6.82 billion. International revenues were $3.5 billion.

Despite uncertainty over Google in China, Fetyko says there is “more business to be had outside of China.” He says, overall, the China issue is priced in and reflected in the stock and estimates.

Fetyko's 12-month price target on Google is $600-$650.

Making Their Case: The Bear

Porter Bibb, Managing Partner, MediaTech Capital Partners

Between its presence in dotcom with and Gmail, and its smartphone products like the Android, it seems like Google has the 20th Century completely covered. However, even though the company has all the tech talent that exists in the universe, Bibb still poses the question, “What have they done beyond search that makes money?”

In Bibb's view, Google fails to execute diversification. Sure, it taps into advertising venues with radio, TV, and print campaigns, but “nobody bought it.” Bibb says the company also is not making money on YouTube. And, when faced with stiff competition from Facebook, Bibb believes the soon-to-be-launched GoogleMe certainly has its challenges.

Crystal Lau contributed to this article.



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