Google Earnings: This Doesn't Look Good

Google (GOOG) shares started off down 10% immediately at market close, upon announcement of earnings/revenues that didn't meet expectations on the Street. (See the conference call transcript.)

Earnings came in at $4.63 per share vs. an expectation of $4.72 per share. Revenue grew at the expected rate of 39%.

I think most investors were anticipating that Google would well exceed Street consensus since they don't provide guidance to the Street and they have more beats than underperforms under their belt.

On the last miss, they said the economy wasn't slowing down ad clicks. Perhaps now, there's more evidence that this is occurring? However, that wouldn't explain Google hitting the revenue number; it looks like expenses were way over consensus.

So, I'm a bit more bullish than the 10% lopped off this evening, and continue to hold shares.

Disclosure: Long GOOG

Comments

[SilentGoogleGuy]

Google's problem is that it is still a one trick show. Search is the only way they make serious dough, all the other things they do, Google screws up because they hire people who don't know anything other than search.

Too bad for investors of Google in the long run.

[glacier]

You demonstrated that your bs.

Google is weathering slowdown well and gaining mkt share and showed constraint on expense. The unexpected lower interest contributed to the miss and some more.

SA should remove such low quality post.

[blah-blah]

I agree with the Silent Google Guy

Google is still a one trick pony - all they do is throw out random ideas in a effort to get something, ANYTHING to work and still 99% of their income comes from search. Their most famous aquistion YouTube is unmonetizable.