Why Investors Should Be More Concerned About Google's Outlook Than Its Quarterly Numbers

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Piper Jaffray analyst Gene Munster was on CNBC to talk about why the outlook from Google Inc GOOG GOOGL will be more important than its earnings report, as well as the headwinds facing the company.

What's To Come That's More Important Than Google's Latest Quarter Financials?

"Well, what's to come is that they have a huge business in search and they continue to gain share within the mobile part of search and that's important because they can make more money over time with mobile versus desktop," Munster said. "There are some things inherent to mobile, like your location, that are important to advertiser. That’s one important theme to look at for investors."

Related Link: Piper Jaffray's Gene Munster: Amazon Top Pick For 2015, Despite Having Spent Like 'Drunken Sailors' In 2014

He continued, "The other piece is that they are putting their tongs into things like video and trying to get more TV dollars with YouTube and then down the road they have fiber connected devices, autonomous cars and this augmented reality theme which is something way down the road. The bottom line is stacked with 10-year type of themes and if you are an investor who has an opportunity to think about the next several years, this is a great story to own."

Headwinds For Google

"There are some choppy issues near-term, probably the biggest one is what's going to happen with EU," Munster said. "There's been some change in leadership there and traditionally the EU has not been very favorable to big U.S. tech companies…So, there's some uncertainty about how Google is going to have to operate and the key question is what's going to happen with some of their data? So that's one negative wild card that investors tend to be concerned about."

Munster continued, "The second big wild card is FX and in general we have seen companies talk about a 5 percent hit -- Facebook last night talked about a 5 percent hit. So, that’s something probably not as big of a concern because it hits everybody, but it is something that is going to impact their numbers."

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Posted In: Analyst ColorCNBCAnalyst RatingsMediaGene MunsterPiper Jaffray
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