Google (NASDAQ:GOOG), Sued By Oracle
Google Inc. (NASDAQ:GOOG), a global technology company generates revenues mainly by delivering online advertising. It maintains an index of web sites and other online content for users, advertisers and other content providers. The Company focuses on business areas such as search, advertising, operating systems and platforms. Currently, the Company is facing trial over allegations by Oracle that Google’s Android mobile platform violates Oracle’s intellectual property rights.
With the U.S economy showing signs of improvements and increasing share of Google’s android smart phones software, helped by new models from handset makers like Samsung and HTC, the company is expected to report strong growth in the coming quarters. With the U.S economy getting better, corporations are not only increasing their spending on marketing but are also increasing share of spending on internet marketing in their marketing budget as it enables them to reach target customers and also offers data-focused return-on-investment capabilities. Google sites being the market leader in North America with 66.4% market share are expected to benefit immensely with rise in corporate spending on internet marketing.
As per analyst’s forecasts, Company’s revenues are expected to increase by 5.9% for the quarter ending June-12 as compared to quarter ending June-11. Earnings are expected to increase by 10.7% for the quarter ending June-12 from $ 9.21 in June-11 to $ 10.20 in June-12. Sales for the fiscal year ending Dec’12 are expected to be $ 35.5 Billion higher by 6.7% as compared to last fiscal year.. Earnings for the fiscal year ending Dec-12 are expected to be $ 43.42 higher by 9.4% as compared to the last fiscal year.
In the last year, stock has risen by +15.4%, whereas YTD returns have been – 5.39%. Google being an established growth company with much lower valuations and cash-rich balance sheets is a good stock pick in the technology space. However, ongoing trial over allegations by Oracle that Google’s Android mobile platform violates Oracle’s intellectual property rights might act as a drag on stock’s performance in the coming months.