All you need to Know

Goldman Sachs raised their Google price target to $620.

They see 20% upside to that year-end target and are bumping EPS estimates 2%-4% for this year and next. Better than expected margins will likely lead to free cash flow generation above previous street expectations. Blah Blah Blah.

Why does Goldman’s research get so much mindshare these days? I worked at a shop that was covered like a wet blanket by the Street and never considered their work anything special. Sure, they have long been the underwriter of choice. But they routinely make terrible calls, just like the rest of the Street. Goldman dominates many things...equity research is not one of them in my mind. I would rather get plugged into a good analyst at a boutique if I need the sell-side to hold my hand. ‘Nuff Said.

Google’s stock is reasonably inexpensive here after absorbing months of multiple compression and underperforming a ripping tape. It held technical support levels around $440 and Eric Schmidt once again has some spring in his step:


“The global growth of our core search and ads business and our focus on building our partnerships drove our strong results in the quarter,” said Schmidt in a post-close press release. “We continued to expand our worldwide footprint, adding important new partners and growing our platform to increase our ability to deliver targeted and measurable ads. The ongoing expansion of our network allows us to improve the user experience through new opportunities and programs. The Street.com

More importantly, the weather is finally glorious on the East Coast.  Curt Schilling is on the mound tonight against the Yankees.  And The Lash will be back with another Entourage piece for lunch.

What else do you need to know?
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The content contained in this blog represents the opinions of 1440 Wall Street. This commentary in no way constitutes a solicitation of business or investment advice. It is intended solely for the entertainment of the reader, and the author. No Positions

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