Jordan Rohan Feels Google May Miss Expectations

In an interview on CNBC, Jordan Rohan, managing director of Stifel Nicolaus, said Google (GOOG) may post its earnings for the latest quarter at $6.29 per share, short of the consensus expectations of $6.50 per share.

According to Rohan, Google's stock is a long-term buy and is expected to rise to $675 a share. At 3:20 pm, Google was trading at $489.44, down 0.39%.

Rohan mentioned, “I still think Google works as a stock. On a pre-cash flow yield basis, it’s quite cheap." However, he wasn’t upbeat on the company’s earnings for the quarter, as currency fluctuations in Europe have pressured Google's dollar-denominated growth rates. Moreover, a change in the company’s marketing and selling strategy for its Nexus One phone has also affected GOOG’s earnings. Google has also been hiring and investing into its growth.

Rohan commented, “Google continues to hire and invest in things like mobile, Android [smartphone operating system], which is having a real impact and is creating a real asset value—but isn’t creating a lot of revenue for Google today.”

"These investment levels (are) what make my estimate a little different than the average estimate on Wall Street," he added.

Similar concern was expressed by analyst Mahaney of Citi. Like Rohan, Mahaney also believed that the stock is a long term investment.

However, Carter Worth, chief market technician at Oppenheimer, begs to differ. He stressed that it is a good time to buy GOOG. When interviewed, Worth said, "It's a case of so bad it’s good. Having sold off by 200 points or 32 percent, from 630 down to 430, we think it bounces here. We’re buying here going into earnings."

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