Peter Kafka

Recent Posts by Peter Kafka

Can Google Get Some Wall Street Love Again?

In the tech and media worlds, Google is a goliath. On Wall Street, at least this year, it’s a disappointment: Shares of the search giant are down some 20 percent for the year to date, while the rest of the market has been more or less flat.

So today’s a chance for the company to impress investors again, as it unveils its Q2 earnings. In a lovely bit of timing, it has primed today’s pump with news that it had persuaded Omnicom to commit “hundreds of millions” of dollars into Google’s display ad exchange over the next two years.

What else can Google do to convince the Street? Here’s Citigroup (C) analyst Mark Mahaney’s always-helpful cheat sheet, which tries to handicap investors’ reactions to a range of different results (click image to enlarge). The consensus calls for revenue of about $5 billion and earnings of around $6.50 a share; both numbers are up about 21 percent over the previous year:

This is normally the part of the post where I go over other interesting stuff that Google might address during its call, like its back-and-forth with China, the impact of its Nexus One failure, or the “when will YouTube turn a profit” question.

But Google is doing its best to keep these calls closely focused on its core search business and its moves into display ads. And as of Q1, it has banished CEO Eric Schmidt from the proceedings, lest he say an interesting word.

Still, you can always hope. I’ll be covering the earnings report and subsequent call live today, starting at 4 pm eastern; check back later in the day for a link.