BGC Partners Downgrades Google to Hold

BGC Partners has published a research report on Google (NASDAQ: GOOG) and has downgraded the company from Buy to Hold after the company reported quarterly holiday earnings that fell short of expectations.

In the report, BGC writes, "Google reported solid but not stellar results in its seasonally strongest quarter of the year that felt short of expectations on both revenue and earnings. Net revenue of $8.1B in the December quarter was below our estimate of $8.4B and consensus estimates of $8.4B. Net revenue growth was 27.7% YoY and 8.3% sequentially. Adjusted EPS of $9.50 was below our estimates of $10.84 and consensus estimate of $10.49. GAAP net income was $2.70B while GAAP operating income was $3.50B. Results were negatively impacted by a decline in click pricing, foreign currency impact, an uptick in G&A spend, and a higher than expected tax rate. We are reducing our rating to HOLD from BUY as we see the stock is now stalled in a seasonally weaker first half of the year and has to contend with the pending Motorola acquisition."

Google is currently trading down $49.31 from yesterday's $639.57 closing price.