The Deipnosophist

Where the science of investing becomes an art of living

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Location: Summerlin, Nevada, United States

A private investor for 20+ years, I manage private portfolios and write about investing. You can read my market musings on three different sites: 1) The Deipnosophist, dedicated to teaching the market's processes and mechanics; 2) Investment Poetry, a subscription site dedicated to real time investment recommendations; and 3) Seeking Alpha, a combination of the other two sites with a mix of reprints from this site and all-original content. See you here, there, or the other site!

25 September 2006

Google/GOOG - UBS Securities

Meaningful monetization improvements in Q3;
notable improvement this year

UBS Securities says looking at Google's short history as a public co, there have been meaningful monetization improvements in Q3. The firm's analysts state that while Q3, at an industry level, is a seasonally weak quarter, GOOG Q3 quarter vs quarter net revenue growth has been impressive. They believe, "Is there a meaningful monetization improvement in Q3 this year?", is an important question for the stock in the short term.

While not as obvious as some improvements in the past, there are notable improvements this year. The analysts note the two important to them are:
1) the Landing Page Quality update, and
2) a keyword and ad text quality score change.

They further say the basic impact raises minimum bids for advertisers and note that quantifying their impact is difficult; that there are monetization improvements this year, but believe they are unable to quantify accurately their impact. The analysts advise investors to remain on the sidelines.

For the complete report, please email your interest.
-- David M Gordon / The Deipnosophist


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