Google under pressure ahead of earningsJanuary 22, 2013: 11:59 AM ET
Google is reporting earnings after the bell Tuesday and all eyes will be on the search giant's expenses as it transitions deeper into other markets.
Last year, Google (GOOG) completed its biggest acquisition ever, when it paid $12.5 billion for Motorola Mobility. That deal gave Google access to more than 17,000 patents that will help keep lawsuits from Apple (AAPL) and Microsoft (MSFT) at bay.
Gaining Motorola also opened a window into the hardware world, which could give Google yet another revenue stream. And let's not forget that pesky little antitrust bullet that Google dodged earlier this month.
Google has already made great strides in the smartphone arena with its popular Android platform, but Motorola-related expenses may overshadow revenue gains Google made in other areas.
And there's some concern that advertising growth may have slowed a tad, which could spook investors. Shares were down about 1% early Tuesday.
This week brings a deluge of big tech earnings and StockTwits traders had plenty to say when it came to Google.
Everyone's a critic. I say we leave the past in the past and look forward. Google is swimming in some new ponds, which, in the ever changing tech landscapeshould be viewed as a positive.
Big underperformance from $GOOG over last 7 sessions into tonight's earnings - 6% while market higher. hmmm.
Did I mention how fickle investors can be? Google is still expected to show earnings and sales growth. And just because it may log some big expenses because of its Motorola buy doesn't mean its business is headed down the tubes.
Shares have largely been above $700 since Dec. 13, when Google's maps app resurfaced on the iPhone -- much to the joy of millions of iPhone users.
$GOOG Premiums are higher than $AAPL, probably because of the possibility they pre-announce again!
As my colleague and fellow StockTwits tweeter Paul R. LaMonica recently pointed out, the third-quarter disappointed because analysts' expectations were way too high, and the ensuing sell-off was an overreaction.
And while Google's stock is not cheap, it's still "a good bargain," to quote LaMonica.
Can't help but address the Apple reference here. Worries about lower profit margins could lead to Apple's first profit decline in nearly a decade. Now before everyone gets all excitable (and not in a good way), estimates are still all over the place so it's really anyone's guess. They report Wednesday so stay tuned.