1 Number Google Stock Investors Should Know Ahead of Earnings

If Google (NASDAQ: GOOGL  ) stock rallies after the company reports earnings on Thursday, it'll be because costs per click are rising again. But there's another element to the story that's equally important, if not more so: Apps usage.

Microsoft (NASDAQ: MSFT  ) is still the king of the market for productivity software, but Google is catching on, with more than 40 million reported users of its Google Apps suite. New efforts to bolster the offering with Keep, an Evernote lookalike, could help win customers over time. Rumored efforts to boost messaging could also prove popular, especially with Facebook (NASDAQ: FB  ) taking steps to boost its own capabilities in this area via the "Home" app for Android.

For its part, Wall Street is expecting Q1 revenue to soar 72.5% to $14.04 billion, resulting in $10.69 of profit per share. The company beat earnings estimates in three of its past four quarters, with a 15.2% miss in the September quarter counting as its only aberration, according to data supplied by Yahoo! Finance. Google stock is up roughly 25% over that period.

Will Google stock rally following the report? Tim Beyers of Motley Fool Rule Breakers and Motley Fool Supernova weighs in on this question in the video below. Please watch and then leave a comment to let us know whether you would buy, sell, or short Google stock at current prices.

For further analysis of Google's Apps ambitions, try our newest premium research report, in which we dissect Google's sprawling empire and tell you what the search king is really worth, and whether the stock deserves a place in your portfolio. Access your report now by clicking here.

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  • Report this Comment On April 14, 2013, at 8:24 PM, prginww wrote:

    The article is fairly written as is. Google's earnings driver is going to significant as the bottom line or EPS will be a key driver. CPC will be more important than top line growth which has not quite been there. I think Motorola's is still providing deadweight but google is spreading across other areas to essentially diversify beyond their adv business. Mobile growth and tablet advertising growth will be important despite one anaylsts criticism that they are discounted 40 and 60% respectively. I do not own goog but intend to pickup a position in the next 48 hours especially below 800 going into earnings.

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