Google announced their Q2 results today after the market had closed. Shares are down by as much as 12% as earnings growth reported was below analysts expectations. Net income for the quarter was $1.25B, up from $925M. The company reported a profit of $4.63 per share, which was slightly below the $4.72 average expectation from Wall Street analysts.
Time to go long…
A little more than my earnings from selling my body.
and so is MSFT, AAPL and others. IBM is doing it right tho!
See… I told y’all that this internet thing was just a fad.
Indeed. The same thing is happening now to the previously golden Google. You can blame a culture of analysts on Wall Street that idiotically pushes down stock of a very profitable company on the slightest variation from their projection. You can blame it on a culture of dumb hack tech bloggers like Arrington who predict the end of the world for profitable companies like Yahoo (which never lost money in its existence) while pumping up shitty companies that will never make a dime, such as Twitter and Mahalo.
When morons rule the roost irrationality is all we’re left with.
Only in America would a profitable company reporting a profit cause a stock’s price to drop…
The reason the price was so high is that shareholders were expecting the higher earnings from Google. Google didn’t deliver so the price readjusted for the reduced earnings that Google did announce. I don’t see a problem here. Eventually the price will equalize when the market comes to a consensus (i.e. stable stock price) on what to expect for earnings going forward.
This is how the stock market works in all countries.
instead of posting an image of their quote, why not embed a widget/ticker with real updates?…that image will be worthless the moment its posted….
ye recommend a good one and I will use it
plus what Joe said
wow.. threaded comments
threaded comment sucks
now we just need voting so we can hide the donks
“instead of posting an image of their quote, why not embed a widget/ticker with real updates?…that image will be worthless the moment its posted….”
It’s after the market closed.
Therefore it’s good till tomorrow.
And it’s todays news
happy: you have no idea how stocks work
To address Happy’s comment. The stock dropped because Google’s growth rate is priced into it. If the company doesn’t grow as fast as people expect it to, then it drops.
Google may have had a great quarter, but it wasn’t as great as people were expecting.
between, want to ask why gmail is working only intermittently today..crap..
until they start making money on tech google is still a media company
wow, this story is really, really good.
Did someone hack TC or what. What’s with the weird looking comments..
I assume it’s an intentional update, not a hack.
Gotta say that I’m not a fan of the new look, TC team, but maybe it will grow on me. The shaded bars seems to be dividing each name/comment pair, rather than tying them together….
Still 39% above Q2 last year is not bad.
Great comment JGuy
It’s pretty bad when I see Google below $500 a share, and think “BUY BUY BUY”.
I mean, it’s almost guaranteed to go back up,like when Apple’s stock crashes after a bad keynote, or Amazon when they went down a couple of weeks ago, but $500 a share. I could buy exactly five shares of Google, if I still want to make rent this month.
@Joe:
“It’s after the market closed.
Therefore it’s good till tomorrow.
And it’s todays news”
It’s called after-hours trading. There was activity until 6pm ET. The image above is actually out-of-date. Notice the little “After Hours” price under the big price.
greg: there are other ways of making money that dont involve directly buying shares 1 for 1
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The vast majority of Google’s earnings comes from its Pay Per Click Web Advertising Model. The Management needs to look at other areas in which to generate key revenue growth. Google Android could be that ‘oil spill’.
But from today Google needs to seriously look at its Google Apps business model and find out ways of making it generate important revenues for the company.
If Microsoft could make huge revenues by providing ‘killer apps’ for the Desktop OS, then Google must repackage their Google Apps ‘free model’ onto ‘paid subscription model’, to provide ‘must have services’ for the Web OS.
Why Google wastes time in releasing nonsense like ‘Lively’, when they should be looking at ways in making Google Apps the ‘must have’ Web OS Service for the Global Business Community. God Only Knows.
I predicted this many months ago…
I noticed a massive drop in adsense earnings starting around Feb/March. I should have sold short on this. Adsense hasn’t recovered since.
why is this article on TechCrunchIT? I am a little confused with the branding of different TC properties. What does each TC site specialize in?
sweet! maybe we can now afford homes in Palo Alto and Mountain View without mass overbids from Googlers.
This is the first time google’s revenues have come in below analysts estimates. I wonder if we’ll begin to see share holders start putting pressure on google to curb their spending on “non-core” projects? I don’t think yet but this may be the begining of that.
Yeah this was expected, despite posting record incomes. As people above are saying, that was all factored into the price.
They didn’t miss projections by much though and for a stock to fall 12% just goes to show the volitility in the US market right now…
I WISHED I earned my money in another currency other then USD, living in Europe, this is really hurting me
only in America would a very Profitable company announce profits and lose 12% of its stock price
Oh, sad news for Google. Poor Google…pitiful Google. Someday you’ll get through with this. Google is still #1 I believe.
Ummm the reason why Google’s shares went down like that is because of one reason. P/E ratio is out of control.
I notice that all the numbers and figures you have posted. Companies with high P/E ratios (like Google) are over valued and are usually set to come down eventually.
If a company like Bersher Hathaway run by Warren Buffet can have a share price in the hundred thousand but its P/E ratio is 20, I think a company like Google should be at 17 LOL but its way higher than that.