Google (Nasdaq: GOOG) Stock: Pre-Earnings Gain Just The Start for Strong 2014

Google Inc. (Nasdaq: GOOG) stock jumped nearly 4% early Thursday morning ahead of its Q4 earnings report on news that it is selling Motorola Mobility.

The Motorola Mobility division had continued to lose money for Google, most recently an operating loss of $248 million last quarter. GOOG purchased the division for $12.5 billion in May 2012 and will sell it to Lenovo for $2.9 billion.

GOOGLE-A NASDAQ: GOOG Jan 30 12:26 PM loading chart... Price: 1,139.10 | Ch: 32.18 (2.8%)

That was good news for GOOG stock investors who were anticipating another loss from Motorola Mobility. Now they turn their attention to this evening's earnings report...

Analysts are projecting earnings per share (EPS) of $12.19 on revenue of $16.76 billion. Those estimates are up from last year's actual EPS of $10.59 and revenue of $12.16 billion.

Last quarter, GOOG beat earnings estimates by 3.9%. Google has beaten earnings estimates in three of the past four quarters.

Google has set the earnings bar high for itself today, but there are other important numbers to watch...

GOOG investors should also keep a close eye on Google's advertising figures.

Last quarter, Google introduced its "enhanced campaigns" program, which allows users to create advertisements that can be displayed across multiple platforms.

In the third quarter, Google reported a 26% increase in paid clicks from the previous year and an 8% increase from the second quarter. An increase in those figures today would be a great sign for GOOG investors, and for the company's newest ad program.

Investors should also make note of Google's mobile advertising. Google reported mobile revenue of $4 billion in 2012, and investors will be looking for that figure to increase substantially. Analysts at Forbes have estimated that mobile advertising should touch $6.1 billion for 2013.

According to Gartner mobile advertising was an $11 billion industry in 2013, and that's projected to grow by more than 400% by 2016.

Finding the right figures to watch for is one thing, but knowing what to do with GOOG stock is another...

GOOG stock is up 48% in the last 12 months, but it has dipped 2% in the last week. That recent blip shouldn't concern shareholders.

According to Money Morning Capital Wave Strategist Shah Gilani, Google is the type of tech stock that investors should own right now. Huge tech stocks like Google are bellwethers for the entire tech industry, and Gilani forecasts a strong year for the markets in 2014.

"[Technology stocks] are all going to rise. I think all boats are going to rise with the tide. I think we're at the beginning of a generational bull market in my opinion," Gilani said on "Varney & Co."

The fact that Google continues to acquire tech companies and startups is another factor that makes Google appealing to Money Morning's Defense & Tech Specialist Michael Robinson. Most recently, Google's acquisition of "smart" thermostat maker Nest shows its dedication to innovation.

"Google is like a future tech ETF with current cash flow," Robinson told Stuart Varney on FOX Business. "These guys throw up a lot of cash and they're involved with the 'Internet of Everything.' This is part of a broad initiative."

Last quarter's strong earnings report set the bar high for GOOG stock, and if revenue growth isn't as strong as expected, a short-term dip should be expected. But according to the experts at Money Morning, Google remains a strong long-term investment.

"Analysts" frequently throw around misinformation about bioscience stocks without doing the right research. But this ingenious company will soar, despite what this "analyst" has claimed...

Related Articles:

• CNN Money:
  Google to Sell Motorola Mobility Unit to Lenovo
• Forbes:
  Google's Earnings Preview: Focus on Revenue Growth From Ad Divisions and Motorola Mobility