Google (Nasdaq:GOOG) did not exactly blow it out
in the first quarter of the year. It reported $8.08 a share in earnings
when analysts were looking for $8.12. Revenues of $6.54 billion beat
expectations of $6.32.

Google appears to have missed due to increased
costs associated with hiring 1,600 employees in the quarter.

The question now will be : is this really bad
news. In some ways, Google is a special case. Its dominant position in
the online world is of its own making. Google pretty much invented the
business model of paid search advertising. And if you want to sell
online, you have to go through Google.

Of course this sets the company up for
competition. But the strength of the Google brand name is a very
effective moat around the company

Published by Wyatt Investment Research at