GOOG: Still the Search King
To start, we have to consider what are YNDX stock and BIDU stock up against when compared to GOOG stock. There’s not even a shred of doubt that Google is the yardstick when it comes to search success. The company has posted ten straight years of rising revenue, and ten straight years of rising earnings, sailing through a recession like it wasn’t even happening.
More of the same growth is projected through 2015, as GOOG taps into the still-growing smartphone and tablet arena while simultaneously cultivating a new television-delivery technology. Revenue is expected to grow around 17% in 2014, with per-share earnings projected to grow 18%.
That big growth doesn’t come without a price, however. Although the market is broadly tolerant of frothy valuations, GOOG stock is pushing its luck with a trailing P/E of almost 32 and a forward-looking P/E ratio of almost 20. The fact that Google will now have to post some of its competitors’ ads in the European market is only going to strain that already-frothy valuation even more.
Still, it’s Google … and Google’s worst day is still better than most companies’ best day. What are Yandex and Baidu going to do to impress investors?