Google Misses On Earnings, Stock Falls Further

Google released its latest earnings report tonight, and Wall Street did not like it. The stock fell in after hours trading almost $40, or about 7%, with over $12 billion in market cap going bye-bye. What was wrong with Google’s earnings?
Revenue for the quarter was $3.39 billion, up over 50% from $2.23 billion a year earlier. Earnings were $1.41 billion, or $4.43 per share, or $1.21 billion including one-time costs, up from $1 billion a year earlier. However, analysts were expecting revenue of $3.45 billion and earnings of $4.44 per share.
Is there really a big deal in that missing $60 million and one cent per share? To investors, yes. For Google, expectations aren’t something it is expected to meet, they are marks Google is expected to exceed. Investors don’t expect Google to make those numbers, they expect Google to beat them, and when […]

See original post by Nathan Weinberg