Some of the main discussion points worth watching for on the Google earnings call tonight:
- Any discussion of sectoral advertising weakness. Yahoo has people thinking that automotive and finance dragged their results down. If Google says those sectors performed, then someone is (likely) fibbing.
- Capital equipment spending growth. For at least three quarters in a row now, and maybe longer, Google’s capital equipment expenditures (“CapEx”) has grown faster than revenues. That makes people very, very nervous.
- Ad inventory glut. People will be watching for comments on rapidly increasing ad inventories driven by social network, YouTube, etc.
- YouTube copyright liability. Universal’s suits this week, plus saber-rattling from Time-Warner, will have people wondering if Google has bought off more liability than it wanted with YouTube. Then again, as the Times is reporting today, Google shrewdly turned three of the major music companies (Vivendi, Sony BMG, and Warner) into Google shareholders in the current deal.
- The $2.42 consensus number, of course.
Others? Feel free to add ’em.