Google Stock Report

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  • Topic: Google, Web search engine, PageRank
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  • Published : December 6, 2012
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Individual Stock report: Google Inc. (GOOG)
Chao ZHANG

Description of the company
Business & Relevant history

Google Inc. (NASDAQ: GOOG) is an American multinational corporation which provides Internet-related products and services, including internet search, cloud computing, software and advertising technologies. Advertising revenues from AdWords generate almost all of the company's profits The company was founded by Larry Page and Sergey Brin while both attended Stanford University. Together, Brin and Page own about 16 percent of the company's stake. Google was first incorporated as a privately held company on September 4, 1998, and its initial public offering followed on August 19, 2004. The company's mission statement from the outset was "to organize the world's information and make it universally accessible and useful and the company's unofficial slogan is "Don't be evil".In 2006, the company moved to its current headquarters in Mountain View, California. Google's initial public offering (IPO) took place five years later on August 19, 2004. At that time Larry Page, Sergey Brin, and Eric Schmidt agreed to work together at Google for 20 years, until the year 2024. The company offered 19,605,052 shares at a price of $85 per share. Shares were sold in a unique online auction format using a system built by Morgan Stanley and Credit Suisse, underwriters for the deal. The sale of $1.67 billion gave Google a market capitalization of more than $23 billion. The vast majority of the 271 million shares remained under the control of Google. The stock's performance after the IPO went well, with shares hitting $700 for the first time on October 31, 2007,primarily because of strong sales and earnings in the online advertising market. The surge in stock price was fueled mainly by individual investors. The company is now listed on the NASDAQ stock exchange under the ticker symbol GOOG and under the Frankfurt Stock Exchange under the ticker symbol GGQ1.

Product

Chart 1

Management

Key Executives|  |

 | Pay| Exercised|
Dr. Eric E. Schmidt Ph.D., 57
Exec. Chairman, Chairman of Exec. Committee and Chairman of Acquisition Committee| 7.20M| 0.00| Dr. Lawrence Page , 39
Co-Founder, Chief Exec. officer, Director, Member of Acquisition Committee and Member of Exec. Committee| 0.00| 0.00| Mr. Sergey Brin , 38
Co-Founder, Assistant Sec., Director, Member of Acquisition Committee and Member of Exec. Committee| 0.00| 0.00| Mr. Patrick Pichette , 49
Chief Financial Officer, Principal Accounting Officer and Sr. VP| 3.66M| 5.46M| Mr. Nikesh Arora , 44
Chief Bus. Officer and Sr. VP| 3.66M| 1.90M|
|

|
Amounts are as of Dec 31, 2011 and compensation values are for the last fiscal year ending on that date. Pay is salary, bonuses, etc. Exercised is the value of options exercised during the fiscal year.| Currency in USD.|

Future plan

Keep focusing on Google’s distinctive competence: developing superior search solutions and monetizing them through targeted advertising. This approach offered many avenues for growth, especially when search was broadened beyond the World Wide Web to encompass print, video, mobile, and other information sources.

Investment Thesis
This report is focused on using financial analysis tools testing stock of Google. To find holding google’s stock can hedge against inflation and has potential to rise in price in future.

The report will run street estimate and DCF modeling to find terminal price of GOOG, and go through SWOT analysis and it’s competitors to illustrate GOOG has a potential value to buy now or hold for long time and will perform well in future market.

Consensus price target (Street Estimates)

Earnings Est| Current Qtr.
Dec 12| Next Qtr.
Mar 13| Current Year
Dec 12| Next Year
Dec 13|
Avg. Estimate| 10.50| 10.68| 39.82| 46.39|
No. of Analysts| 34.00| 25.00| 37.00...
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