I've noticed that many who take issue with my analysis of Google and Apple truly don't understand what kind of company Google is. To call it a search engine, ad company, or even Android vendor is to demonstrate an ignorance as to both its business model, accomplishments and aspirations. Google is not a search engine, ad company or even a mobile OS vendor, it is a data company and the foremost data company in the world.
I took the time to explain this in detail on the Max Keiser show last week. I think it's worth a listen. Click here for the full show [5], and see below for the excerpt....
For all of those near fanatics who do not subscribe, I suggest you ask a friend who does subscribe to share with you the difference between last month's valuation note target price (page 10 of 
Apple Margin & Valuation Note [6]) and the price of Apple today (click here to subscribe [7]). I also urge the same for Google using our latest Google Q1-2012 Valuation Summary [8]. BoomBustBlog's tech research has been on point with these two companies, just as it has been with Research in Motion, referencing Hindsight Is 20/20, And As Luck Has It Our Foresight On Research in Motion Was Right On The Money Two Years Ago [9].
For a more indepth look at these companies, see:
- A Realistic Look At The Companies In The CNBC Stock Draft 2012 - Part 1 [10]
- Analyzing Apple's Q2 Earnings, Google Challenging Amazon & Microsoft on CNBC Stock Draft Picks Today at 2:30 [11]
- Watch As 202 Hedge Funds Follow The Bouncing Apple, Till They Don't!!! [12]
- Facebook Finally Faces The Fact Of BoomBustBlog Analsysis [13]
- For Those That Want To Take A Peek Inside the Professional BoomBustBlog Paywall, Here's All of My Groupon Research - MUPPETS!!! [14]
A more indepth collection of our relevant research on Google and Apple, both current and from the archives can be found below.
Industry Leading, Subscription Based Google Research
All paying subscribers should download the Google Q1-2012 Valuation Summary [8], wherein we have updated the valuation numbers for Google using a variety of metrics. Click here to subscribe or upgrade [7].
Google still exhibits the likelihood that they will control mobile computing for the balance of the decade.
Subscription research:
[18]Google Final Report [18] 10/08/2010
[19]An Analysis and Valuation of Google's Android and AdMob [19] 09/27/2010
A couple of bits from our archives...
[27]
The table of contents outlines how we have broken Google down into distinct businesses and identified both the individual business models and the potential revenue streams, as well as valuation for each business line.
[28]
Page 57 of the analysis shows a sensitivity table which outlines the various scenarios that can come into play and how it will change our outlook and valuation opinion.
[29]
Professional/institutional subscribers can actually access a subset of the model that we used to create the sensitivity analysis above to plug in their own assumptions in case they somehow disagree with our assumptions or view points. Click here for the model: Google Valuation Model (pro and institutional) [30]. Click here to subscribe or upgrade [7].
Fresh and Very Accurate Apple Research
For all of those near fanatics who do not subscribe, I suggest you ask a friend who does subscribe to share with you the difference between last month's valuation note target price (page 10 of Apple Margin & Valuation Note [6]) and the price of Apple today, the day after earnings (click here to subscribe [7]).
As excerpted:
It is worth noting that the key assumptions that underline the above valuations – (1) iPhone continuing to witness stupendous growth ******* in 2012 and ****** 2013 over a larger base and (2) iPhone margins continue to remain healthy off stable prices and despite increase in material cost – should be keenly watched over the next couple of quarters.
Then ask them bout the logical argument behind the concern with Apple and the extremely volatile price action of the last few weeks. As stated many times in the past, The BoomBustBlog argument and analysis is solid.
What else is there to the earnings announcement? Well we were absolutely correct in terms of the oncoming margin compression of the the product lines, something that was actually easy to see coming but many refused to admit. Of course, there will be those select few that say, "But wait, the company reported an INCREASE in margins while you said there will be a decrease!". Yes, that's true and both can exist simultaneously.
[31]
[32]
[33]
I will discuss nearly all of the stocks in the CNBC stock picking list above in the next few posts on my way to studios via BoomBustBlog and ZeroHedge. Comments are always welcome. Follow me:
[34]
[35]
[36]
[37]
[38]