Is Google’s Growth Sputtering?

July 27, 2004
Brice Wightman

Stocks
staged a reflex rally after some early morning positive economic news.
The Dow managed a triple digit gain, closing at the highs for the day; breadth
was the best in a month and volume increased. Consumer confidence jumped to
106.1 in July — a two-year high and the fourth consecutive monthly gain — with
new home sales rising to 1,326K. However, oil prices were higher, touching a
high of $42 a barrel due to refinery problems and shrinking crude stockpiles.

Verizon
(
VZ |
Quote |
Chart |
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PowerRating) posted earnings that beat by 6 cents with growth from its
wireless business and declines in its landline phone service. Revenue rose 6% to
$17.8 billion with its wireless sales division showing a 25% increase. VZ upped
EPS estimates for the second half of the year to $1.22 a share.

Sixty percent of S&P companies have reported earnings this far this quarter; 206
beat estimates (last year 254), 52 matched (last year 8) and 42 missed (last
year 38).

Is Google’s growth
sputtering? In their new quarterly earnings results compared with the filing in
April, the company’s growth has slipped from 60% quarter to quarter, to 20%.Â
With the auction process, Google hopes to make more the shares more available to
the average investor.Â Some say, though, that the price may be prohibitive,
as few smaller investors buy stocks with $100-plus price range. Twenty-eight
brokers are handling the deal, which is expected the week of August 9. There
have only been nine IPOs filed via auction, mostly smaller companies.

Lockheed Martin’s
(
LMT |
Quote |
Chart |
News |
PowerRating) earnings rose to $296 million with sales up 14%
to $8.78 billion; the company expects full year revenue to reach $33.8 billion.
Dupont
(
DD |
Quote |
Chart |
News |
PowerRating) posted lower earnings at $503 million and upped FY 2004
earnings outlook to $2.30 a share. The lower earnings were due to a $302 million
charge for job cuts and other one-time charges.

Dow	+123.22	10085.14
S&P 500	+10.84	1094.91
Nasdaq	+30.08	1869.10

Economic news releases today
include: Consumer confidence level at 106.1 for July with new home sales also up
at 1,326K.

10-year Notes were -265
at 109.210

The dollar
was +0.75 at 89.72

Gold was -4.60 at 386.60

Crude Oil was +0.41 at
41.85

Volume was 1.6 billion
on the NYSE, and 1.75 billion on the Nasdaq.

Market breadth was positive.

NYSE	Issues
Advancing	2073	Up Vol 1076
Declining	1234	Down Vol 497
Ratio	1.67	2.20
Nasdaq
Advancing	2147	Up Vol 1341
Declining	972	Down Vol 385
Ratio	2.20	3.48

Stocks in the news:

Anthem
(
ATH |
Quote |
Chart |
News |
PowerRating) reported earnings of $237.9 million
with revenue up 12% to $4.53 billion. The company upped full year earnings
estimates to $7 a share.

AirTran Holdings
(
AAI |
Quote |
Chart |
News |
PowerRating)
earnings were lower at $16.8 million with its load factor rising 2.2 points to
75.4%.

L-3
(
LLL |
Quote |
Chart |
News |
PowerRating) reported earnings of $88.1 million with
sales rising 40% to $1.68 billion. For FY 2004, LLL expects earnings of $3.40 a
share on revenue of $6.6 billion.

Genesis Microchip
(
GNSS |
Quote |
Chart |
News |
PowerRating) rose after reporting a
quarterly loss of $1.3 million on sales of $52.8 million on strong demand for
flat panel TV and LCD monitors.

Brice Wightman

Is Google’s Growth Sputtering?

BUY THE FEAR, SELL THE GREED

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