International Business Machines Corp. (IBM), Microsoft Corporation (MSFT), Google Inc (GOOG): A Tech Tale of Conflicting Results

Google feels the heat in mobiles

Google Inc (NASDAQ:GOOG) reported its quarterly profits which came ahead of expectations, but cracks in revenue growth are visible, leaving market experts worried if the growth rates are sustainable. Quarterly revenue came in at $14 billion, up 31% from last year. However, ad fees per click declined 4% on a sequential basis due to a larger share of smartphone ads, where variation in rates can be as high as 50%.

GAAP net income in the first quarter of 2013 was $3.35 billion, compared to $2.89 billion in the same period last year. Having already gained 12.5% so far in the year, the stock appears fairly valued at a forward price earnings ratio of 14.3. A major overhang remains in the form of potential regulatory constraints or fines, especially in Europe.

Foolish bottom line

On the whole, the companies have found their separate operating niches and yet they are compared to each other. Valuations for International Business Machines Corp. (NYSE:IBM)  and Microsoft Corporation (NASDAQ:MSFT) are attractive, indicative of further appreciation in stock price, but the same cannot be said about Google Inc (NASDAQ:GOOG).

The article A Tech Tale of Conflicting Results originally appeared on Fool.com and is written by Jacob Wolinsky.

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