Google results, not everybody convinced!

And then earnings after the bell from Google inc. This is a company with a market capitalisation of 211 billion Dollars, incorporated in September 1998. So, if Google were a person, they would not be able to get a drivers licence or enter into any legal agreements without consent of their parents/guardians. There is to be a stock split and the control aspect by the founders (Larry and Sergey) and major shareholders leads me to believe that they think they are the parents. Which means that the shareholders are the kids right?

Felix Salmon has this take -> Google's evil stock split. I suspect this is a bit of a problem. BUT, don't cry foul here, in the founding Google document there is a line that suggests that investors will have little ability to give strategic direction to Google with voting rights. In other words, you should have known that all along.

Here are the results release after market: Google Announces First Quarter 2012 Results and Proposal for New Class of Stock. Sales up 24 percent, international revenues were stronger than before and now represent 54 percent of group revenues. Costs have risen again significantly, but that is because the Google machine is getting bigger. GAAP operating income was higher (32 percent) as a percentage of total revenues in the first quarter this time around when measured against last time, 27 percent, BUT were lower than the prior quarter (33 percent). Total costs and expenses as a percentage of revenue fell to 68 percent from 73 percent in the corresponding quarter. Non GAAP EPS clocked 10.08 Dollars per share, well ahead of the expectations of 9.65 Dollars. Total cash and cash equivalents, and short-term marketable securities? Hold your breath, 49.3 billion Dollars.

They could buy Nokia and Research in Motion and more than half that left over. 49 is to 211 as a percentage is just over 23 percent of their share price in cash alone! So, excluding that cash portion (I know you shouldn't), you come to a share price of roughly 500 Dollars. So, annualise this current quarter and you get above 40 Dollars worth of earnings. Ex the cash on hand the stock then trades at 12 and a half times earnings! Hardly expensive, is this about as cheap as I have ever seen the stock price.

But what are the key risks here? Well, some folks have pointed out, a lack of being in the tablet space and what are they going to do with the Motorola asset now? On the conference call apparently Larry Page told someone to be patient about the whole phone thing! And the long term development stuff? Ads online? What about Facebook? I suspect all things considered Google has stayed true to their culture, they still have the energy to explore new and exciting concepts (virtual reality and driverless cars amongst other things) and they still should get more traction on their adverts, the core of their business. Even though we are all familiar with Google ads and how they work, not all of use the new methods enough. I am going to say that the company should still be accumulated, the base is very low outside of their two main territories which are the US (46 percent of all revenues) and the UK (11 percent of all revenues). We continue to accumulate the stock.