Wall Street Still Loves Google

Despite dropping almost 19% in after hours trading, many analysts have raised – yes, raised – their earnings estimates for Q1, according to CNET.

Six out of 32 analysts have updated their earnings estimates for Google, bumping up their forecast to $2.06 a share for the first quarter from $2, according to Dropsey. And for its fiscal year, analysts now expect the company to generate $8.98 a share–up from previous estimates of $8.79.

Some are not as convinced…

“We’re downgrading Google primarily because of concerns about weaker-than-expected international revenue growth,” said Ben Schachter, a UBS Securities analyst. “I think they are investing heavily in that area, and that is the right thing for the company in the long term. But in the near term, it will put pressure on its margins for the next couple of quarters.”