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Accidentally released the earning report early the same day they're reporting that they missed earnings...
Shares dropped by 9% before being suspended...
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Google really screwed the pootch, eh?
#1
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Posted 2012-October-18, 12:19
Alderaan delenda est
#2
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Posted 2012-October-18, 12:25
Yes, quite an embarrassment. According to Google, R.R. Donnelley is to blame.
The growth of wisdom may be gauged exactly by the diminution of ill temper. — Friedrich Nietzsche
The infliction of cruelty with a good conscience is a delight to moralists — that is why they invented hell. — Bertrand Russell
The infliction of cruelty with a good conscience is a delight to moralists — that is why they invented hell. — Bertrand Russell
#3
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Posted 2012-October-19, 14:05
Nothing really changed because of the premature release. They were going to publish those numbers anyway, I mean what's the big deal. What it worrying is how expectations of Google can be so high that lower earnings can have such a devastating effect. The company is doing well, although many many are not. Would you rather be Google or Nokia?
In other news, stock value doesn't mean anything unless you choose to sell now. Perhaps Google made a lot of people who gambled on their stock rising angry, that's the risk of the trade!
In other news, stock value doesn't mean anything unless you choose to sell now. Perhaps Google made a lot of people who gambled on their stock rising angry, that's the risk of the trade!
#4
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Posted 2012-October-22, 00:08
Gerben42, on 2012-October-19, 14:05, said:
In other news, stock value doesn't mean anything unless you choose to sell now.
But the stock tanking reduces your freedom to make that choice.
Suppose you buy Google stock. When its price increases sufficiently, you decide to go out and buy a nice car with the earnings. But while you're deciding between a Lexus and Ferrari, the stock price drops. Through no fault of your own, you can no longer afford that car. On the other hand, your ability to afford the car in the first place was also through no effort of your own.
#5
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Posted 2012-October-22, 03:32
Gerben42, on 2012-October-19, 14:05, said:
In other news, stock value doesn't mean anything unless you choose to sell now. Perhaps Google made a lot of people who gambled on their stock rising angry, that's the risk of the trade!
It probably also made a lot of people happy. If you are a net buyer of stocks, e.g. a young person starting out their savings, then you want the stock market to fall. That way your money buys greater cashflow. It is well established that the stock market prioritises short term earnings far more than it should when calculating a price. One missed earning report doesn't really effect the ten year earning expectation, which is roughly what should control the stock price in a rational world.
Google remains the only tech company on my buy list, although its far enough down the list that I probably won't actually buy it.
The physics is theoretical, but the fun is real. - Sheldon Cooper
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