Google quarterly earnings

RBC analyst Mark Mahaney has put together a cheat-sheet (via re/code) to help make sense of Google’s earnings call, due later today.

The tl;dr version is that gross revenues above $15.65B will be viewed by the market as positive, below $15.55B seen as negative and anything between the two business as usual. The market consensus is for a neutral announcement at around $15.61B and earnings per share of $6.25 – ad growth offset by lower revenues due to more mobile ads, which typically cost less … 
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While the market response to Google’s quarterly earnings seems to have been lukewarm, the stock price dipping in after-hours trading and at least six analysts lowering their price targets after the company came in slightly under Wall Street expectations, Warwick Business School Associate Professor John Baptista says that the modest performance is a ‘blip’.

Bapista, who has researched the company for many years, said that although Google’s ad revenues have suffered as traffic shifts from the desktop to mobile devices (something Google wasn’t slow to address), the real growth in the future will be in the cloud, with Google ideally placed to benefit … 
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