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Tuesday, 23 August 2011 - S&P upgrades Google stock days after sell view |
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      Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Home Business Business Home Economy Technology Media Small Business Green Business Legal Deals Earnings Summits Business Video Markets Markets Home U.S. Markets European Markets Asian Markets Global Market Data Indices M&A Stocks Bonds Currencies Commodities Futures Funds peHUB World World Home U.S. Brazil China Euro Zone Japan Mexico Russia Afghan Journal Africa Journal India Insight Global News Journal Pakistan: Now or Never? 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Analysis: HP - Dial "M" for mayhem Free games boost gaming industry revenue Apple working with suppliers on new iPad: report Missouri teachers sue to block social media law Video: Texting as a competitive sport More technology news Follow Reuters Facebook Twitter RSS YouTube Read Gaddafi whereabouts a mystery as rebels close in 9:10am EDT Spitzer sued for libel over his Slate column 2:50pm EDT Gaddafi hunted as loyalists fight on in Tripoli | 4:48pm EDT Consumer Edge says U.S. confidence hits new low 10:28am EDT Five headless bodies found in Acapulco 20 Aug 2011 Discussed 257 GM says bankruptcy excuses it from Impala repairs 243 UPDATE 3-White House denounces Perry as Republicans target Fed 152 Obama accuses Congress of holding back U.S. recovery Watched Una Healy got naked on holiday Sat, Aug 20 2011 Lockheed Martin presents airship of the future Thu, Aug 18 2011 Libyans celebrate rebels in Tripoli Sun, Aug 21 2011 S&P upgrades Google stock days after "sell" view Tweet Share this Email Print Related News Wall Street sinks for fourth straight week Fri, Aug 19 2011 Insight: The madness of Wall Street Fri, Aug 19 2011 DealTalk: Sizing up who might buy Motorola's phone business Fri, Aug 19 2011 HP may drop PCs, to buy Autonomy for $11.7 billion Thu, Aug 18 2011 Apple, Qualcomm, others eye InterDigital Wed, Aug 17 2011 Analysis & Opinion A mad day trader’s diary of market turmoil Does a downgrade cost anything? Related Topics Technology » Hot Stocks » Asian Markets » Media » A posed picture shows a Motorola Droid phone displaying the Google search page in New York August 15, 2011. Credit: Reuters/Brendan McDermid By Alexei Oreskovic SAN FRANCISCO | Mon Aug 22, 2011 3:52pm EDT SAN FRANCISCO (Reuters) - Recommendations to unload Google Inc stock are extremely rare on Wall Street. But the latest "sell" rating for the Internet company was so fleeting it existed for just three trading days. Standard & Poor's upgraded Google's stock on Monday, giving it a "hold" rating, reversing its much-debated downgrade the prior week. S&P had slapped Google with a Sell rating -- the only such bearish call on the Internet giant's stock among almost 40 analysts tracked by Thomson Reuters I/B/E/S -- after a surprise August 15 announcement that it will buy Motorola Mobility Holdings Inc for $12.5 billion. As with other investors and industry commentators, S&P voiced concern about Google's plans to enter the smartphone manufacturing business, which could weigh on its financials and create conflicts with the other handset vendors who also license Google's Android software. Shares of Google have fallen more than 10 percent from their closing price before the deal was announced, trading just a whisker below $500 in the afternoon, compared to the Dow Jones Industrial Average's roughly 3 percent drop during the period. But while several analysts adjusted targets on Google's stock price following news of the deal, no other firm appears to have downgraded Google's stock, according to Thomson Reuters data. Scott Kessler, the head of technology sector equity research at S&P, said the sell-off in Google's stock following the Motorola news had brought its share price down to the $500 target that he set for Google when he downgraded the stock. "It's very hard for us to say sell this stock when it's trading below its target price," Kessler told Reuters in an interview on Monday. The fact that the back-to-back Google downgrade and upgrade came from S&P Equity, whose parent's unprecedented downgrade of United States sovereign debt this month roiled global markets and prompted discussion, made the move all the more striking. Kessler acknowledged it was unusual to see a stock's recommendation change so quickly. But he said the move was consistent with S&P's approach to equity research. "If we made a change to our fundamental commentary or the target price, that would understandably be a little curious," he said. Google, the world's No.1 Web search engine, has 14 "strong buy" ratings, 20 "buy" ratings and 5 "hold" ratings, according to Thomson Reuters data. Google has no other "underperform" or "sell" ratings according to Thomson One (S&P's research is not included in Thomson One). Although S&P raised its recommendation on Google's stock a notch, Kessler said the firm's views of Google have not changed much. "We still have a lot of questions and concerns about this proposed acquisition and the impact it's going to have," he said. (Reporting by Alexei Oreskovic; Editing by Phil Berlowitz) Technology Hot Stocks Asian Markets Media Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints   We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above. Social Stream (What's this?)   Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Back to top Reuters.com Business Markets World Politics Technology Opinion Money Pictures Videos Site Index Mobile Legal Bankruptcy Law California Legal New York Legal Securities Law Support & Contact Contact Us Advertise With Us Connect with Reuters Twitter   Facebook   LinkedIn   RSS About Privacy Policy Terms of Use Our Flagship financial information platform incorporating Reuters Insider An ultra-low latency infrastructure for electronic trading and data distribution A connected approach to governance, risk and compliance Our next generation legal research platform Our global tax workstation Thomsonreuters.com About Thomson Reuters Investor Relations Careers Contact Us   Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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