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Google's Blowout Earnings Report Ends Complaints of "Too Much Spending, No Results"

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Over the last 3-4 quarters, Google's growth has been extraordinary for a company of its size, and its major growth initiatives have been successes of historic proportion.

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Sean provides in-depth analysis and specific trades in the tech sector in his TechStrat Report. The following article is a sampling.

As I said a couple days ago:

Might Google (GOOG) change the tone for tech earnings after the Novellus (NVLS)/Microchip Technology (MCHP) tepid start? I think tech away from the Japan supply chain did well for the current quarter, and tech exposed to the Japan supply chain will do well in 1-2 quarters again.

GOOG did just that -- blew it out. Interestingly, in my view, this quarter really isn't that much better than the two of three which Mr. Market punished mightily. Sure, it beat -- versus having a miss -- but over the last three to four quarters, GOOG's growth has been extraordinary for a company of its size, and its major growth initiatives have been successes of historic proportion. No other company had put forth a challenge to the Apple (AAPL) iPhone dynasty until the Android platform came along, and Android just went from 3% to the No. 1 smartphone global OS in the world in about 18 months. IPhone did something equally extraordinary, but they did it against a field of weak competitors. GOOG did this against AAPL, and that is magnitudes harder.

Moving on, I've written at length about "both Chromes." As big as Android is, I have said the Chrome collective will be bigger. I see nothing to change that view, but only strengthen it. Like Android, Chrome browser has gone from zero to 20% usage share in a very short period of time against a great field of browsers -- notably, the ever-improving Firefox.

Now for the masses, the jury is still out on the Chrome OS -- but readers have seen my views on this for over a year and I'm saying again that Chrome OS could be bigger than anything else that GOOG has done so far. Basically Microsoft (MSFT) Windows could become the next "burning platform." However, a lot depends on how aggressively GOOG chooses to roll Chrome out, and there are reasons to not shock the global PC channel too quickly. Much more on this in due time.

There are also a whole host of other very compelling growth initiatives that I'll be writing about in the coming months and years, but suffice it to say that there are other platforms of growth that hold incredible promise.

Now onto the quarter, which is a near blowout.

EPS is reported of $8.74, beating estimates by $0.91 and revenues at $6.92 billion. That's up 36%. Find me another company of this size and diversity growing this quickly.
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Positions in GOOG, AAPL

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