Outlook 2013: What's Next for Google?1/7/2013 3:24PM
Morningstar senior equity analyst Rick Summer joins digits to discuss what to keep in mind when tracking Google's stock this upcoming year. Photo: Getty Images.
This transcript has been automatically generated and may not be 100% accurate.
... the ... there was in store for rule in twenty thirteen ... we go Montessori with some I'd joining us now from Morningstar in Chicago ... on to tells all about as these attacks analysts that ... aam miss some of thank you Brian much for joining us sure to read and now what somewhat selective about who will go just go aam Basin Ilan off the hook by the Federal Trade Commission ... of Anti Trust Dom why race ALM ... that's probably a great way to stop the year with the DCA getting better ... but yet I don't think there can only was not a great deal of overhang at least with respect to the register in Iran here in United States ... I think that if people still need to keep in mind that ... living on her right to sell their art regulatory issues in the European Union ... it's not necessarily likely that the euro and the fact that the same way ... that being said we have not viewed the regulatory risk of being paramount late for investors to today ... now that the stall Tom and you know it's it's it's called a baseline to take a price on it there this summer hundred and thirty three goals today ... that down its costs but still I'm hurting pretty much done very well of the last twelve months ... aam ... D C that valued easy that undervalued estate going higher ... yet they kept the stock market appreciation your record the last year were a lot less than pleased about it we we look at that that the ... stock was worth about seven hundred ninety dollars ... a very modest undervaluation here today ... for me to greet core holding in the Internet sector ... um but they're still alert them ... that they see that we think the cop that are valid till the going for it in and you mention one thing regulatory risk nothing to do is ... they all come only ... after unloading the top bought it from what is left with ... Mota role of both Iran and look for property ... as well as around the device strategy ... all the things that very very compelling company ... it really that this whole war in the Internet sector and ... to Dhoby with a continued to ... benefit from consolidating spending around ... a few Internet giant ... has now gone ... as a test for when we looked at them perish with what he's gone his playful for this yes one should do as an investor of things he should be focusing on ... so I think I in any mention Erica they were probably more concerned about Larry page the way that he ... is managing the business ... the the the few things are going on at the number one in the continued shift to ... the mobility and ... the continued to make sure that Android is ... really the number one last the Number two player depending on the geography ... a lot of folks are going be watching when the phone and are they getting in the living proof that have agreed that and that happening there ... they feel is looking at the attic and the testing program at buying ... and I think that word Google really has been in a very strong competitor continues to be strong we need to see that ... continue going for but through a small company like that that the ... Fed lowers the will we really theory search and turning toward benefit from ... the much discussed on Partnership ... road abortion chemical that perspective we still think that to look for a very strong ... though a lot of initial price in the top of that sent him a much stronger amassing buying what they exactly what is that for those that don't know absolutely nothing for we look at the old way of ... buying and selling advertising was done ... but folks and it can and should be open I think increasingly ... and there it is I'll charisma treating the winter when all the understand average are trading in lock stock and commodity markets ... but if it didn't help repeal of the county's comes to advertising by ... there is a great deal of technology that mean that ... that enter automatically plate perhaps save perhaps for keywords ... will find buyers as well as by sellers ... and I think that a highly complex ... trained actual marketplace ... and we're seeing a great deal of the party of multi billion dollar market in the one ... that Google has benefited from it ... and and even increase to email revamping folk like Facebook variables ... dissipate in a very small way ... now some some some Sundays me is why the stock is now ... how might you expect that to go ... give them a week and they're likely to perking fair value I think the sentiment on the stock are really of course the last month at last here rather has really changed dramatically ... I think there has not been any fear there's no water in the year with respect to competitive forces from ... from the fifth book ... and and social upheaval July Internet companies to enlarge ... I think that certainly competed converging toward fair value ... some may be right he said in a debt for a ... repeat of the month undervaluation or have more modest upside that thank you Brian much slower rate than some ... senior analyst at Morningstar we really appreciate time so ... great thank you ...