Seeking Alpha

Google's (GOOG -8.4%) Q3 results are out early, and they missed estimates. EPS of $9.03 missed...

Google's (GOOG -8.4%) Q3 results are out early, and they missed estimates. EPS of $9.03 missed by $1.62, and revenue of $11.33B (+51% Y/Y, boosted by Motorola acquisition) missed by $530M. Shares are diving.
Comments (63)
  • AMZN next!!!!!!!!!!!!!!!!!!...
    18 Oct 2012, 12:41 PM Reply Like
  • AAPL...look out folks


    waaaaay too much complacency and overowned big time


    gonna get ugly < 570
    18 Oct 2012, 01:05 PM Reply Like
  • how is apple's results in any way tied to google's?
    18 Oct 2012, 01:09 PM Reply Like
  • Going to be serious bloodshed unless there's a huge rebound - there was a ton of traders playing IV skew. Margin calls coming ...
    18 Oct 2012, 01:10 PM Reply Like
  • doesn't have to be but you will know soon enough that babies get thrown out with the bath water


    sell your CAN go down...and stay down
    18 Oct 2012, 01:39 PM Reply Like
  • trying to play up to your aapl short?
    18 Oct 2012, 01:42 PM Reply Like
  • keeping your head in the sand can be careful out there
    18 Oct 2012, 02:14 PM Reply Like
  • Excellent comment.


    There has been much debate here on SA lately about whether APPL will see $1K, I am of the belief they (APPL) are on dangerous ground letting their flagship devices to be produced in China, with it's "wheel of fortune" trade policies, which it follows when it suits them.


    I stated just days ago, that APPL will plummet due to new foreign / trade policy between China, and the US just days away from being implemented. FOXCONN has a labor dispute and it takes 5000 Policemen cracking skulls to restore order? Sounds safe, right?


    This is where the iPhone 5 is being produced? The device who's decline in sales can cripple APPL?


    One tiny labor glich, and the stock(APPL) will take a header, just like Google, ............but on a much larger scale.


    China's way of letting the US who's cracking the whip.
    19 Oct 2012, 06:30 AM Reply Like
  • Agreed


    But even a truckers strike here once our austerity measures kick in, and they will , may cripple a ton of companies. People will not be spending so freely if that happens.


    I know for a fact that truckers are refusing to shop half a load for less profit per stop. They will wait an extra week to load up and get paid in full. Fuel prices are killing them.
    19 Oct 2012, 12:42 PM Reply Like
  • Ouch,
    18 Oct 2012, 12:42 PM Reply Like
  • Market hysteria because of Google? Too funny.
    18 Oct 2012, 12:47 PM Reply Like
  • You should think of GOOG being used as a test of what can happen due to hysteria. Read that again.


    GOOG, FAR stronger that APPL, was used as a test bed.


    Check the trading range, look at the value drivers. Why do people get so offended when someone talks smack about APPL?


    Every stock drops, it's APPL turn in the barrel. Knowing when to sell is the art, not spotting 1 of 2 possible tech stocks who produce computers, to invest in.


    Smart folks sold long ago when we saw $600 for the first time, done. At the time I remember saying it was trading @ 10 x value.


    * All trades are registered. check who shorted GOOG, shortly before the drop. No surprise.
    21 Oct 2012, 06:16 AM Reply Like
  • It will get worse. Google just released a new Android version 4.1.1 ("Jelly Bean") that maims MILLIONS of cell phone users by draining the battery within 24 hours.
    Unless Google rectifies this problem ASAP, the company could be held liable for BILLIONS in damages.
    18 Oct 2012, 12:47 PM Reply Like
  • Billions in damages due to low battery life? If I could sue for that I'd have all of Nokia's money, and Apple's, and Samsung's.... Motorola RAZR MAXX is probably the only one which wouldn't fall under that category.
    18 Oct 2012, 12:52 PM Reply Like
  • Don't you read?
    Battery life is fine UNTIL the update is installed. THEN, it drops to < 24 hours.


    It's like you have a beautiful garden. I come in as the gardener and rip out all the plants. Would you be happy about that or not? No, you would infuriated and demand I fix it. Or pay damages.
    18 Oct 2012, 12:53 PM Reply Like
  • dieuwer...I really have no interest in this.....but pruportedly is not a reliable source and does not cut it... As they say on TV, that's hersay and not admissable!
    18 Oct 2012, 01:02 PM Reply Like
  • I experienced it myself and many many other people.
    18 Oct 2012, 01:06 PM Reply Like
  • Actually Google released it in Poland and Korea with bugs hence the delay they are purported to be releasing the fixed update in November, which apparently was the reason for the sliding release date in the more populos user countries
    18 Oct 2012, 01:09 PM Reply Like
  • Um... please post where any one person or group of persons has successfully sued a company for battery life degradation. I don't care how you feel, or what you experienced or about my "beautiful garden" your supposedly destroying. It's battery life, sure you might have to plug your phone in every 3 hours but I really fail to see how you can prove that caused "damages" of any significant amount.


    I read just fine so you just provide the court case / link and I'll find it.
    18 Oct 2012, 01:12 PM Reply Like
  • 24 hours of battery life? That's an UPGRADE on many phones...
    18 Oct 2012, 01:46 PM Reply Like
  • Update 4.1.2 is already out. As a user of 4.1.1, there were no battery issues. Missing earnings and revenue is a real issue. Phantom battery issues are not real issues.
    18 Oct 2012, 01:49 PM Reply Like
  • Good Luck with that lawsuit....


    damages for lower battery life ... sorry bud, but that is hilarious....
    18 Oct 2012, 04:17 PM Reply Like
  • 1. Android 4.1.1 was released July 9.
    Android 4.1.2 was released Oct 9.


    2. Googling "Android 4.1.1 battery problem" brings up a lot of links... mostly about how Jelly Bean *improves* battery life.


    3. Googling "Android 4.1.2 battery problem" brings up links that repeatedly say "bug fix", "trivial", etc. Not much about battery issues at all.


    Nothing to see here, folks.
    19 Oct 2012, 01:26 AM Reply Like
  • Smells like a google censorship conspiracy!


    Haha I am suprised some aapl cultist didn't beat me to that nonsense plea
    19 Oct 2012, 11:54 AM Reply Like
  • GOOG trading halted?
    18 Oct 2012, 12:55 PM Reply Like
  • yes, halted at 687.30
    18 Oct 2012, 01:00 PM Reply Like
  • Ya halted but why ?


    10% drop enough to warrant a halt by the Nasdaq ?


    Or further pending news ? (don't think that can be good)
    18 Oct 2012, 01:01 PM Reply Like
  • ER was leaked by mistake
    set buying @ 650, see if i can buy some today
    18 Oct 2012, 01:06 PM Reply Like
  • Yes, talk about market overreaction and flash crash behavior. Everything fell down. Is there a significant reason why Europe or the emerging markets should collapse in sympathy? Of course not, but that a clear show that the "efficiency of the market" is simply a lot of hot air. The good thing is that we can profit from the inefficiency.


    Anyway, regarding Google itself, this is a good opportunity to but some leap year out-of-the-money calls at a lower price. Make sure you put your bid well below, though, and let scared market come to you... not often, but sometimes it is just too easy!
    18 Oct 2012, 01:08 PM Reply Like
  • Ab:


    Right. Time to go shopping.
    18 Oct 2012, 01:14 PM Reply Like
  • I totally agree. you may be able to get other names too once trading begins and google falls further.
    18 Oct 2012, 01:20 PM Reply Like
  • There really is no reason why the shares are halted. Will Google is privileged and not let it hit a 10% drop? when we see companies can lose more than 30% in a day or more ...
    Seriousness please! Google loses 10% because it brought bad results, trading should be normal ...
    18 Oct 2012, 01:55 PM Reply Like
  • AB


    Maybe everyone is waiting for this false market to correct then ALL will run to the doors. Your own comment kinda puts this into play. People are trying to make a quick buck but have no significant confidence in these markets. Hence bad news and head to the door.


    Of course over time google will bounce back from this. But the game might be coming to an end...We shall see in a few months..
    18 Oct 2012, 01:58 PM Reply Like
  • If Google hits $650 today we have bigger problems than you think!
    18 Oct 2012, 02:00 PM Reply Like
  • Doesn't look like it's shopping time to me right now..If you are good luck, imho as stated the pullback has started!!


    Even the metals are affected, but will bounce back much faster.!!!
    19 Oct 2012, 12:44 PM Reply Like
  • LOL. GOOG buying AMZN for 50B.
    18 Oct 2012, 01:02 PM Reply Like
  • Better get your popcorn ...


    CNBC says it was a "fat finger" release... can't wait for that picture on Phil's post tomorrow !
    18 Oct 2012, 01:04 PM Reply Like
  • I don't think is was "fat finger". Most people set a protection for their shares, which were triggered. Look at the selloff of QCOR yesterday. Same pattern.
    18 Oct 2012, 01:08 PM Reply Like
  • CNBC is usually wrong on most points. It was here, as well.
    18 Oct 2012, 03:32 PM Reply Like
  • VIX has not figured out the tech wreck yet.
    18 Oct 2012, 01:16 PM Reply Like
  • This pattern has been established for four weeks. Tech stocks moving down, rest of market (especially dogs like materials & mining) moving up. Seems like classic long/short hedge fund strategy. Net/Net market moving sideways for past month. VIX moving sideways.
    18 Oct 2012, 01:26 PM Reply Like
  • Astute observation. I agree.
    18 Oct 2012, 03:33 PM Reply Like
  • Here we go !!!!




    Shares dropped 10% already and they reported early as well...Down 69 bucks...The correction is starting imo..


    Apparently the company did not rlease the numbers . It was who they report them to. A fat finger release by someone....Now damage control kicks in!!
    18 Oct 2012, 01:25 PM Reply Like
  • you don't know what you are talking about. Look at VIX, the market is not panic, very strong
    18 Oct 2012, 01:27 PM Reply Like


    Wait and see in a few days...Starting a corrrection can take up to a year. Please do your due diligence before responding. Looks kinda funny...


    Do you actually think this market has a lot of small time investors left in it!! Nope...It is computerized and the DOW is down!!!!


    If you use the VIX for all your investments then we also disagree..
    18 Oct 2012, 01:34 PM Reply Like
  • again, you must be really confused. I am talking about near term, say in two weeks. Of course there will be corrections. In a year, there could be several corrections. LOL
    18 Oct 2012, 01:45 PM Reply Like


    NO, sorry if you did not undertand me. A correction CAN start and take a year to finish..Please go look back to 2008 and 2009..I am really not confused at all. But keep posting your thoughts as others can learn..


    Again due diligence.....
    18 Oct 2012, 01:49 PM Reply Like
  • It was the printing company R R DONNALLY...Nevertheless this is bad news!!!
    18 Oct 2012, 01:27 PM Reply Like
  • Not a surprise! Google's acquisition of Motorola added revenue but absolutely no margin... It will also dampen G's historical growth rates... A 22x price-earnings is too rich, as the market discovered today...


    This is the first full quarter of results with Motorola attached, and the breakdown won't be pretty...
    18 Oct 2012, 01:29 PM Reply Like
  • I do not agree to suspend shares. If we know the reason for the fall. For Google suspend, suspend supposedly should fall Google effect, such as, FB, GRPN, LNKD, ZNGA, AMZN, etc. If suspended Google, then it would be more justified in suspending the other. Com
    18 Oct 2012, 01:37 PM Reply Like
  • dont worry it will fall 15% when the dust settles
    18 Oct 2012, 01:44 PM Reply Like
  • In today's world, someone must step in to stop the bleeding. The whole stock market is on life support. Eventually, the Doc will leave and the training wheels are taken off.


    We have the lowest historical rates since the beginning of time, yet the market is barely moving and on NO VOLUME. Wall street complains that the little guy is missing all the spoils of QE. But this time, the little guy is smarter than the big guy. We little guys know the end game all too well. We know what will happen when we get back to normal interest rates and what it will do to equities and homes.
    18 Oct 2012, 10:52 PM Reply Like
  • SEB


    I agree but we have an Election coming up and with the Unemployment numbers blowing up today, then this...You KNOW the White House IS putting pressure on everything they can.


    Too bad BO cannot control financial results....Lets see if Mitt gets time on Monday to tackle this although it is suppose to be a foreign policy debate.


    Maybe under the category that our economy is FOREIGN to BO?
    18 Oct 2012, 01:42 PM Reply Like
  • Looks like my worries over Google's top line revenue growth (from core ad revenue) were not unfounded. Unfortunately I gave up the idea of shorting the stock around $685. Congrats to those who bet here correctly.
    18 Oct 2012, 01:59 PM Reply Like
  • All of a sudden one would think the entire economy must be failing, given the overall market reaction to Google. All other numbers suddenly irrelevant. Truly predictable behavior, though.


    Advice: Go find today's most-beaten-up names, outside the tech sector, and buy some or sell some OTM puts.
    18 Oct 2012, 02:35 PM Reply Like
  • We're all looking for "deep value." According to Graham pricing, there is a huge dearth at the moment. Selling cheap puts here must be carefully considered given market risks.
    18 Oct 2012, 04:03 PM Reply Like
  • White:


    One should never sell cheap puts, but days, like today, often occasion momentary hysteria, elevating premiums and presenting opportunities for sales of short-duration OTM puts to bank a few extra bucks. I would add to my previous comment, however, that I never sell puts agaisnt any name I would not be happy owning at the strike sold.
    18 Oct 2012, 04:09 PM Reply Like
  • Premature earnings relating is never a good thing.
    18 Oct 2012, 03:06 PM Reply Like
  • And....we are off
    18 Oct 2012, 03:20 PM Reply Like
  • It will be interesting to see what Google roll out as the reason for the revenue decline. Essentially Google is in a numbers game - once the numbers reach an inevitable plateau (perhaps they are there now) then revenue growth becomes unsustainable and worse, customers drift off to other platforms and the next latest/greatest. Coming out with new and profitable 'products' is actually pretty difficult in a completely virtual world, but if you can't increase subscribers you have to sell new products
    18 Oct 2012, 05:37 PM Reply Like
  • GOOG -
    18 Oct 2012, 06:37 PM Reply Like
  • Cisco comes to mind..A sure thing years ago. The only sure thing is the market will eat you alive, especially a manipulated one!!
    18 Oct 2012, 09:31 PM Reply Like
  • Of course it is manipulated, like never before. See my prior post here. Be afraid. What about shorting Europe Index as hedge bet against the rest?
    19 Oct 2012, 09:20 AM Reply Like
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