Are People Too Bearish On Google?

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E = Equity to Debt Ratio Is Strong

The debt-to-equity ratio and balance sheet for Google are both very strong. The same can be said for Facebook. Based on all the money available for innovation and growth in existing areas, these two companies will be duking it out for many years to come.

Debt-To-Equity

Cash

Long-Term Debt

GOOG

0.09

$45.72 Billion

$2.99 Billion

FB

0.04

$10.45 Billion

$530.00 Million

YHOO

0.01

$8.41 Billion

$127.53 Million

 

T = Technicals on the Stock Chart Are Strong

Google has outperformed Yahoo (NASDAQ:YHOO) over the past three years. Google has also outperformed Facebook over the past year, which shouldn’t come as a surprise considering Facebook’s IPO debacle.

1 Month

Year-To-Date

1 Year

3 Year

GOOG

1.85%

1.07%

14.40%

23.27%

FB

11.63%

12.44%

-0.56%

-0.56%

YHOO

2.04%

0.70%

29.46%

19.14%

 

At $714.98, Google is currently trading above all its averages.  

50-Day SMA

695.43

100-Day SMA

704.57

200-Day SMA

655.44

 

E = Earnings Have Been Steady

The numbers below are exactly what you want to see when you’re invested in a company long-term. Google has seen consistent annual earnings and revenue growth.

2007

2008

2009

2010

2011

Revenue ($)in billions

16.59

21.80

23.65

29.32

37.90

Diluted EPS ($)

13.29

13.31

20.41

26.31

29.76

 

When we look at the last quarter on a YoY basis, we see an increase in revenue, but a drop in earnings.

9/2011

12/2011

3/2012

6/2012

9/2012

Revenue ($)in billions

9.72

10.58

10.64

12.21

14.10

Diluted EPS ($)

8.33

8.24

8.75

8.42

6.53

 

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