Google Inc’s disappointing first-quarter results left Wall Street unfazed about the Internet giant’s ability to come to grips with the shift to the fast-growing mobile advertising market.
Though at least 12 brokerages cut their target price on the stock, most analysts kept a “buy” rating or equivalent on the company’s shares.
“Despite an expectations-miss quarter, Google remains one of the best-positioned stocks for many of the secular growth drivers in the Internet space,” RBC Capital analyst Mark Mahaney, who kept his “outperform” rating on the stock, said in a note.
Of the 46 analysts covering Google, 35 have a “buy” or equivalent rating on the stock. Nobody has a “sell”.
“Google remains a core internet holding and we reiterate our “overweight” rating,” Morgan Stanley said in a note titled “Keep calm and search on”.
Many also expect Google’s ad programmes and other products to improve monetisation from mobile advertisements.