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More on Google's Q3 bombshell: Those hopes of rebounding ad prices were misplaced: cost per...

More on Google's Q3 bombshell: Those hopes of rebounding ad prices were misplaced: cost per click fell 3% Q/Q and 15% Y/Y, after rising 1% Q/Q in Q2. Mobile search is one culprit, could e-commerce ad competition be another? Paid clicks, boosted by mobile growth, rose 6% Q/Q and 33% Y/Y. 53% of revenue came from international markets, down slightly from Q2's 54% (is Europe weak?). Motorola revenue was $2.58B (-21% Y/Y). Opex was 34% of revenue vs. 33% in Q2. Capex was $872M, +12% Q/Q. CC at 4:30PM ET (webcast). GOOG -9%, shares halted. (PR)
Comments (8)
  • Abraxas
    , contributor
    Comments (293) | Send Message
     
    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 this clearly 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 when it reopens.

     

    ...not often, but sometimes it is just too easy!
    18 Oct 2012, 01:09 PM Reply Like
  • Jason F
    , contributor
    Comments (217) | Send Message
     
    Very Smart Post!
    18 Oct 2012, 01:16 PM Reply Like
  • PeakOiler
    , contributor
    Comments (292) | Send Message
     
    Another sign of deflationary forces at work. Dump gold, short silver, buy $vix.
    18 Oct 2012, 01:18 PM Reply Like
  • mikeurl
    , contributor
    Comments (422) | Send Message
     
    Larry warms his home by shoveling shareholder equity into a giant furnace.

     

    MMI is a disaster. They should strip the patents and jettison that business. The time of their advertising monopoly is growing shorter. Eventually they aren't going to be able to fund a vast array of money-losing operations using their monopoly profits in search.
    18 Oct 2012, 01:30 PM Reply Like
  • chopchop0
    , contributor
    Comments (3130) | Send Message
     
    yeah GOOG has been a terrible investment the last several years. YAWN
    18 Oct 2012, 01:54 PM Reply Like
  • pman6
    , contributor
    Comments (270) | Send Message
     
    this is stupid. Why halt trading?

     

    it's going to fall no matter what.
    18 Oct 2012, 01:56 PM Reply Like
  • DanoX
    , contributor
    Comments (2584) | Send Message
     
    Boat anchor called Motorola, and Apple maps taking away that revenue. Boom!!
    18 Oct 2012, 02:41 PM Reply Like
  • jackking7
    , contributor
    Comments (35) | Send Message
     
    Seems like there are monetary damages to GOOG and their publisher. Many traders, like myself, had planned to sell the stock, or options, just before the normal 4pm ET close, to lock in gains prior to the E/R.
    18 Oct 2012, 09:23 PM Reply Like
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