Analyst believe that the gross revenues of GOOGLE will increase 37% in 2008 and about 31% in 2009 , this is because of the higher spending on the internet advertising which is very appealing to many companies as the importance of internet continues to grow . They also anticipated that GOOG will employ some of the proceeds from stock sales , including its IPO ( which is completed in August 2004 ) for investments or acquisitions of businesses and companies .
The annual gross margins will narrow in 2008 and 2009 because of less favorable revenue mix that is becoming increasingly tied to large content partners . Operating margins will also decline in 2008 due to aggressive investment for business expansion .
The global economic uncertainty , competitive pressures , and concerns about GOOG's power to could detract from revenue growth , however , GOOG's business model has demonstrated resiliency .
Reuters : outperform
S&P : HOLD
ROCHDALE : HOLD
SABRIENT : BUY
THOMSON : BUY
JAYWALK CONSENSUS : 2.48 ( HOLD - BUY )