Forum Views ()
Forum Replies ()
Read more with google mobile :
Google faces China questions amid solid Q4
|
Edition:
U.S.
Article
Comments (0)
Save
Email
Print
Reprints
Most Popular
Most Shared
An Obama Reboot? President Proposes Volcker's Glass-Steagall Redux.
5:45am EST
Rescue teams pull back as Haiti aid flows in
| Video
10:08am EST
Salt reduction could save 92,000 lives a year
9:56am EST
China downplays Internet feud with United States
10:15am EST
UK Stocks -- Factors to watch on Jan 21
2:03am EST
Salt reduction could save 92,000 lives a year
9:56am EST
Oracle wins unconditional EU approval for Sun buy
8:35am EST
An Obama Reboot? President Proposes Volcker's Glass-Steagall Redux.
5:45am EST
Love in London is as rare as finding aliens
19 Jan 2010
Obama to outline new limits on bank risk-taking
10:36am EST
Google vs China
Google faces China questions
Investors seek insight into Google's disagreement with China that has cast doubt on its future in the world's largest Internet market. Full Article
Google tests loyalties of China's wired generation
Google attack puts spotlight on China's "red" hackers
Focus on China cyberwar fears
What happens next in Google standoff with China?
Timeline: Google's rocky road into China
Google faces China questions amid solid Q4
Alexei Oreskovic
SAN FRANCISCO
Thu Jan 21, 2010 9:00am EST
Related News
RPT-FEATURE-Google tests loyalties of China's wired generation
8:03am EST
Google-China spat may hurt Motorola's Android push
Wed, Jan 20 2010
PREVIEW-Google faces tough China questions amid strong Q4
Wed, Jan 20 2010
RPT-UPDATE 2-Microsoft seeks to replace Google on iPhone-report
Wed, Jan 20 2010
Wall Street frets over Google's future in China
Wed, Jan 13 2010
SAN FRANCISCO (Reuters) - Google Inc is expected to deliver stellar fourth-quarter results on Thursday, but investors will be seeking insight into a disagreement with China that has cast doubt on its future in the world's largest Internet market.
Technology | Media
A strong online holiday shopping season, improving advertising rates and market share gains should help Google, the world's No. 1 Internet search engine, deliver its most robust revenue growth in a year, analysts say.
Some say Google's shares, hurt by the simmering spat with the world's No. 3 economy, have room to rise. They are down 8 percent since hitting a 52-week high of $629.51 on the first trading day of 2010.
"The buy side is looking for pretty strong results on the quarter," said Kaufman Brothers analyst Aaron Kessler. He noted that the unofficial "whisper" numbers among investors have Google's fourth-quarter net revenue growing between 13 percent and 15 percent from the third quarter's $4.38 billion.
That's slightly better than the 12.3 percent sequential growth expected on average, which pegs Google's fourth-quarter revenue at $4.92 billion, excluding traffic acquisition costs. Estimates from Thomson Reuters StarMine, which places more weight on recent forecasts by top-rated analysts, also forecast revenue of $4.92 billion.
Google, which beat Wall Street EPS forecasts in each of 2009's first three quarters, has weathered the recession and ad spending slump better than many of its peers, even as its once-supercharged growth suffered a sharp slowdown.
But while other Internet companies like Yahoo Inc and AOL Inc are still looking for light at the end of the tunnel, Google regained its momentum in the third quarter with a better-than-expected earnings report that sent its shares up 3.7 percent the following day.
While Google's share price doubled in 2009, JMP Securities analyst Sameet Sinha said he believed it could keep rising in 2010 as the economy recovers and Google expands its footprint in different types of advertising such as graphical, display ads and affiliate networking.
"As people get more visibility in 2010, I think there's room for the stock to continue going up," he said.
Google is expected to post $6.50 in fourth-quarter earnings per share, excluding special items, according to Thomson Reuters I/B/E/S. StarMine SmartEstimates said Google should earn $6.52 per share in the December quarter.
MAGNIFYING EFFECT
Google's decision to stop self-censoring its search results in China, and to potentially shut down operations in the country, is of little financial consequence in the short term. Analysts estimate annual revenue from China of $200 million to $600 million.
But executives' comments on the potential to reach a compromise with Beijing, and their strategy for international expansion outside of China, will be closely watched by investors worried about longer-term growth prospects.
On Monday, the company postponed the launch of two mobile phones in the country, manufactured by Motorola Inc and Samsung Electronics, in the first sign that its business there is starting to take a hit.
While Google has been reluctant to share details about its operations outside its core Internet business, analysts and investors are expected to press for more information.
The analysts will "have an opportunity to get some direct answers on these things at Google right now that are very topical," said portfolio manager Ryan Jacob of Jacob Internet Fund which owns Google stock.
"They'll take advantage of it."
More immediately, the fourth quarter may provide further signs of improvement in Google's cost per click -- the price advertisers pay Google when Web surfers click on an ad -- which could increase 4 percent year-over-year after losing ground for several quarters, according to a recent UBS note.
While Google CEO Eric Schmidt has signaled that spending and hiring could soon increase, Jacob said the company would continue to manage costs judiciously, "magnifying" the effect of revenue growth.
"Even a very modest exceeding of expectations on the top line could show a much larger increase in earnings," Jacob said.
But investors will be most eager for insight into Google's expansion plans in China and in the mobile phone market.
Google's plan to sell its new Nexus One smartphone directly to consumers isn't likely to juice the company's revenue in the near term, analyst said. But the costs associated with wading into the electronics retailing business, as well as the longer-term sales and mobile advertising potential, will have serious implications for Google's future performance.
(Reporting by Alexei Oreskovic; Editing by Edwin Chan, Richard Chang and David Gregorio)
Technology
Media
Add a Comment
More from Reuters
Goldman Sachs posts Q4 profit and cuts bonus pool
NEW YORK (Reuters) - Goldman Sachs Group Inc, which had been on track to pay employees a near-record amount, instead set aside nothing for compensation in the fourth quarter and gave $500 million to charity.
Obama to outline new limits on bank risk-taking
Supreme Court rejects corporate campaign spending limits
Jobless claims rise on administrative issues
Cadbury UK investors see Kraft deal despite Buffett
John Edwards admits fathered mistress' child
» More Top News
Obama sets sights on bankers
President Obama may shackle banks with Depression era-like curbs that could also help him tap into public rage over Wall Street excess. Full Article
Commentary: A war on Wall Street?
Obama attacks on banks fall flat
Regulation
So you want to be a hacker?
They are cloaked by pseudonyms and multiple addresses, are often motivated by patriotism and many are trained in schools. Meet China's "red" hackers. Full Article
Fears of a cyberwar from China
Testing China's wired generation
China
© Copyright 2010 Thomson Reuters
Editorial Editions:
Africa
Arabic
Argentina
Brazil
Canada
China
France
Germany
India
Italy
Japan
Latin America
Mexico
Russia
Spain
United Kingdom
United States
Reuters
Contact Us
Advertise With Us
Help
Journalism Handbook
Archive
Site Index
Video Index
Analyst Research
Mobile
Newsletters
RSS
Podcasts
Widgets
Your View
Labs
Thomson Reuters
Copyright
Disclaimer
Privacy
Professional Products
Professional Products Support
Financial Products
About Thomson Reuters
Careers
Online Products
Acquisitions Monthly
Buyouts.com
Buyouts Europe:
Buyouts Conferences:
Venture Capital Journal
ECVJ
International Financing Review
International Securitisation Report
Project Finance International
PEhub.com
PE Week
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.
Other News on Thursday, 21 January 2010 Iraq president: Biden coming amid election spat
Security scare at Munich airport, man flees: police
YouTube to stream IPL cricket live: Google
Human rights abusers 'turn on activists in 2009'
White House launches iPhone application
Detained American journalist opts to leave Israel
Italy's senate backs bill ending Berlusconi trials
|
Bank of America posts loss on public aid repayment
New York Times to begin charging online readers in 2011
Iran snubs nuclear fuel deal: diplomats
Jail fight in northern Mexico kills 23
|
New York Times will charge for news on website
Munich airport closed due to security breach
|
Apple, Microsoft eye replacing Google on iPhone: report
U.S. lifts ban on Muslim scholar: official
|
Amazon ups royalty on low-cost books sold on Kindle
Darfur rebels say death sentences threaten peace talks
|
Russian journalist dies after police beating
|
Sony to launch PS3 motion controller in autumn
Microsoft to issue Google attack browser patch
|
Travolta Organizes Mercy Mission For Haitian Relief
Europeans Fear Prospect Of Palin Presidency For EU-US Personal Data Sharing
Cell Phone Price War On, Plans Get Cheaper
U.S. counterterror agency lacks Google-like search
|
American Airlines Joins Baggage Fee Hike Wave
Restaurant Industry Showing Signs Of Further Improvement In Advancing Economy
Gut-check for Obama and Dems on health care
China plans fifth panda breeding centre
Report: TX judge won't lose job for closing court
South Miami Lawmakers Approve Domestic Partnership Benefits
S.Korea orders lights out to boost birthrate
Gates: Terror groups aim to destabilize South Asia
Gay man says 'reversal' therapy did not change him
New York Times To Charge For Online Access In 2011
Major Storm System Batters Southern California
Vietnam jails four, including lawyer, for subversion
Despite U.S. Recession American Productivity Grew In 2009
Ice storm snarls traffic in nation's midsection
No More Government Contracts For Tax Cheats Says Obama Administration
NATO military chief courts Russia's help
Court schedules unusual Thursday session
Sierra Club names new executive director
TSA nominee withdraws amid 'political agenda'
Witness recounts struggle with al-Qaida suspect
Australia charges 11 asylum seekers over riot
Obama agenda imperilled by Republican Senate gain
Study: Rising seas threaten Bangladesh tigers
Clashes in India over delay in creating new state
White House gate crashers invoke Fifth Amendment
Late Miss. bluesman's son, company dismiss lawsuit
List of top 15 cable programs for Jan. 11-17
French-Israeli film wins Serbian festival
Top 20 prime-time TV programs
Grammy tribute to Michael Jackson to feature 3-D movie
|
China to curb lending binge, regulator says
Pompe disease hits screens in Extraordinary Measures
|
Cuba, US experts try to save Hemingway home
210 million to ride China's rails during holiday
India outsourcers hiring staff as US demand grows
Spanish photographer stripped of wildlife prize
Charlie Sheen visits sick wife, reconciliation underway?
|
Sundance 2010 charts new course for indie film
|
Berlin film fest unveils star-packed line-up
Charlie Daniels suffers mild stroke in Colorado
Grammys will stage 3-D tribute to Michael Jackson
US-TECH Summary
Dutch General in Afghanistan slams critics
Rescue teams pull back as Haiti aid flows in
|
IMF chief seeks 'Marshall Plan' for ravaged Haiti
France joins race to digitize world's books
NATO to create top civilian Afghan post: report
Hugo Chavez tries to show he's serious about drugs
|
Mystery shrouds Pakistani scientist in US trial
Vanquished Ukraine president concedes defeat
Haiti quake rescuers keep hoping against hope
Israeli, Iranian ministers share a rare handshake
Amazon, pre-empting Apple and Google, ups royalties
U.S. says Yemen group one of many al Qaeda branches
|
UN climate panel admits Himalaya glacier data "poorly substantiated"
Netanyahu turns fire on Abbas as U.S. envoy flies in
All-clear at Munich airport after security alert: police
Microsoft takes legal aim at DVR maker TiVo
Asian pollution worsens US air levels: study
Apple may replace Google with Bing on iPhone: report
Russia to boost navy over U.S. missile plans
|
Netanyahu demands Israeli presence in West Bank
Amazon hikes Kindle royalty payment for self-publishers
Netanyahu turns fire on Abbas as U.S. envoy flies in
|
U.S. counterterror agency lacks "Google-like" search
Stalled atom fuel offer to Iran still on table-IAEA
Microsoft to issue "Google attack" browser patch
Iran snubs nuclear fuel deal: diplomats
Microsoft patch due Thursday for IE hole
New York Times will charge for news on website
Israeli, Iranian ministers share a rare handshake
|
Rival Koreas fail to agree over factory park
|
Sony Ericsson:no plan to delay Android phone in China
|
Rival Koreas fail to agree over factory park
Former Texas minister convicted of killing wife
Muslim prayer room set afire amid Malaysia tension
Nokia to offer free navigation
More bias in US against Muslims than other faiths
Japan's leaders feud with prosecutors over scandal
US asks EU to install body scanners at airports
NZ war hero identified by media in Afghanistan
Google tests loyalties of China's wired generation
|
Malaysia sand smuggling swoop nets 34 for bribery
Muslim anger over US military 'Jesus' scopes
NZ army to remove bible quotes from weapon sights
Va. rampage victims include suspect's relatives
Prince William visits fire-hit Australian towns
1st female NY trooper killed on-duty in crash
Koreas end talks without progress
Calif. man pleads guilty to hauling 14 tons of pot
2 gale-force cyclones approach northern Australia
Polanski victim wants director given time served
France joins race to digitize world's books
|
Philippines' Estrada confident after election path cleared
Cindy McCain poses for ad for gay rights group
Five pictures that could surprise Sundance buyers
Seoul shares up after China data; LG Display rallies
S.Korea raises job growth target for 2010
China posts scorching growth but prices heat up
Baidu lawsuit 'without merit': US web firm
A look at "The Amazing Race" teams
PAKISTAN
Five pictures that could surprise Sundance buyers
New series "Deep End" a legal quagmire
China's growth accelerates to 10.7 percent in 4Q
Pompe disease hits screens in Extraordinary Measures
|
Two Koreas fail to agree in talks on joint venture
Signs point to Friday farewell for Conan O'Brien
Haiti telethon seeks largest global audience
|
SKorea's Hynix swings into profit
Conan O'Brien's exit deal pushed again
|
Charlie Sheen gets permission to talk to sick wife
|
Charlie Sheen gets permission to talk to sick wife
NZ consumer confidence at 3-yr high in Jan
YouTube to test movie rental service at Sundance
Seoul shares slip; LG Display, Hynix advance
Bin Laden's son Omar talks to Rolling Stone
|
Haiti telethon seeks largest global audience
David Hasselhoff to star in reality TV show
Affleck, Holmes, `Sopranos' stars join Sundance
New series Deep End a legal quagmire
|
Grammys to show Michael Jackson "Earth Song" 3-D movie
Five pictures that could surprise Sundance buyers
|
David Hasselhoff to star in reality TV show
|
Opel to close Belgian plant this year
New arsenal of shooter videogames target older players
Gates warns of dangers in Pakistan militant havens
Obama to propose size limits for banks
Oracle wins unconditional EU approval for Sun buy
Australia moving cancer-hit Tasmanian Devils to new islands
Nokia to offer free navigation, TomTom shares dive
Up to 10 percent of Iraqis disabled by war, sanctions
|
Simon Cowell, U2, Jay-Z, Lionel Richie Recording Tracks For Haiti Relief
Yemen stops airport visas to hamper militants
|
Alec Baldwin, Meryl Streep, And Others Gear Up For SAG Awards
Ke$ha Spends Fifth Week Atop Billboard Hot 100 With "Tik Tok"
Afghans protest deaths of 4 in NATO-government raid
|
Accusations mark start of new Mideast peace round
|
"Survivor" Castaway Jennifer Lyon Dies From Cancer
Nokia to offer free navigation
Iran denies handshake report with Israeli official
|
Charlie Sheen Allowed To See Wife In Hospital Despite Protective Order
Vampire Weekend Earn First #1 Album On Billboard 200 Albums Chart
Russia says to start Iran nuclear plant in 2010
|
Amy Winehouse Avoids Jail After Pleading Guilty To Assaulting Theater Manager
"Love Story" Author Erich Segal Dies From Heart Attack At 72
In Yemen's Aden, anger mixes with nostalgia
|
Baghdad plans 75,000 apartments to modernize slum
|
Stars Lined Up For George Clooney's Haiti Telethon Special
Case Against David Letterman's Alleged Extortionist To Proceed In Court
Gates in Pakistan seeking action on Afghan Taliban
Witnesses to say drowned Ill. woman feared ex-cop
NZ army to remove Bible citations from armaments
Myanmar official: human traffickers under pressure
Russia denies Baltic fleet boost over Patriot move
China to send 4 new peacekeepers to Haiti
Google faces China questions amid solid Q4
|
Australian PM condemns wartime sinking of ship
Obama to focus on financial reform, economy
New arsenal of shooter videogames target older players
|
Arson attempts on 2 Malaysian Muslim prayer rooms
Oracle wins unconditional EU approval for Sun buy
|
NATO planning civilian boss in Afghan
Clinton seeks thorough China probe on Google issue
|
Indonesia eyes pet market for endangered tigers
S. California braces for 4th day of rain, wind
China says Google case not linked to ties with US
Prince William meets Australian wildfire survivors
New Calif. rule reduces wait time to see doctors
Official: Obama seeks bigger banking restrictions
Microsoft to issue Google attack browser patch
|
ICICI Bank quarterly profit falls 13.4 percent
Taiwan c.bank says FX rate 'dynamically stable'
Suzuki cool on idea of Volkswagen raising stake
'Avatar' tops China box office as officials limit run
Pakistani o/n rates ease; rupee firms; stocks down
China says Google case not linked to Sino-US ties
Suzuki sticking to small amid Volkswagen tie-up
S.Korea 2010 T-bond buyback to top 12 trln won -official
China Southern says will buy 20 Airbus A320s
Hynix books 4Q net profit as sales surge
Workers transform empty hall into elegant SAG site
Grandmaster's next move: A chess revival in Iran
Sci-fi epic set to beat 'Titanic' record
Mother of late singer John Denver dies
Nominations for British Academy film awards
'Avatar' gets 8 noms for British film awards
NBC deal allows Conan O'Brien to seek other network
|
Gorillaz returning with third album in March
Sundance 2010 charts new course for indie film
|
Banksy's "Exit" to premiere at Sundance
Avatar shares nomination lead on BAFTA shortlist
|
Hunger looms as Zimbabwe's planting season ends
Simon Cowell to release charity record for Haiti
|
Conan O'Brien's exit deal pushed again
Recorded 2009 music sales fell around 10 percent: IFPI
|
Gorillaz returning with third album in March
|
Swedish Students Rally For Construction Of A Beer Pipeline
Senator-Elect Brown: 'Daughters Available'
University Of Manitoba Calls For Removal Of Video Lottery Terminals In Certain Establishments To Help Curb Female Gambling Addiction
Store Vandal Licks Raw Chicken; Serves Time
Dog Teaches Humans Some New Tricks
Darwin Researchers: When It Comes To Pooches
Female Bobsleigh Rider 'Bare'-ly Makes It
Greece at new risk of being pushed off euro
Bodies of missing Tenn. mom, Jo Ann Bain, and daughter found
Female Breasts Are Bigger Than Ever
AMD Trinity Accelerated Processing Units Now in Volume Production
The Avengers (2012 film), made the second biggest opening- and single-day gross of all-time
AMD to Start Production of piledriver
Ivy Bridge Quad-Core, Four-Thread Desktop CPUs
Islamists Protest Lady Gaga's Concert in Indonesia
Japan Successfully Broadcasts an 8K Signal Over the Air
ECB boosts loans to 1 trillion Euro to stop credit crunch
Egypt : Mohammed Morsi won with 52 percent
What do you call 100,000 Frenchmen with their hands up
AMD Launches AMD Embedded R-Series APU Platform
Fed Should not Ignore Emerging Market Crisis
Fed casts shadow over India, emerging markets
Why are Chinese tourists so rude? A few insights