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This is an archive article published on July 9, 2011

Google downgraded by Morgan Stanley

Morgan Stanley analysts downgraded Google Inc shares to equal-weight from overweight,citing an expected decline in margins in this year and the following year.

Morgan Stanley analysts downgraded Google Inc shares to equal-weight from overweight on Friday,citing an expected decline in margins in this year and the following year.

The brokerage said the overall consensus is currently too optimistic on the net revenue contribution of Googles newer businesses. It expects a decline in Earnings Before Interest,Taxes,Depreciation and Amortization margins in 2011 and 2012. The stock fell 2.1 per cent to 535.28 in early trading.

 

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