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To: Stock Farmer who wrote (67743)	4/25/2005 2:09:00 PM
From: Lizzie Tudor	Read Replies (2) \| Respond to of 77400

OK so here's the point, John. Google is a company that expenses some stock options now, and is going to have HUGE stock options expenses as soon as expensing comes down for employee stock options. They generate around 500mm in cash per quarter. Analysts upgraded GOOG stock pretty much en masse after these numbers, even the bearish analysts (and there are many, now) who are dragged kicking and screaming into any internet stock like the UBS guy. People incl analysts are ignoring stock options expenses. Everyone but you. The market is not a frothy climate for tech right now. So where do you attribute the strength in stock price? Revenue totaled $1.26 billion, nearly doubling from $651.6 million at the same time last year. After subtracting commissions that Google paid to other Web sites in its advertising network, the company's first-quarter revenue was $794.5 million. If not for a charge to account for stock options that Google awarded its workers before going public, the company's earnings would have ranged between $1.39 to $1.46 per share. Google's profit wouldn't have been quite as impressive without an abnormally low effective tax rate of 19 percent during the quarter. Caris & Co. analyst David Garrity estimated Google would have earned $1.12 per share if the company's tax rate had been at a more normal 30 percent.