Stock bomb: Google down $72 after earnings miss

[Bootlegged]

http://biz.yahoo.com/ap/060131/earns_google.html?.v=7


AP
Google Earns $372.2M in 4Q, Misses Views
Tuesday January 31, 5:29 pm ET
By Michael Liedtke, AP Business Writer
Google 4th-Qtr. Profit Nearly Doubles to $372.2M but Misses Estimates; Shares Drop 15.5 Percent


SAN FRANCISCO (AP) -- Google Inc.'s rapid financial growth decelerated in the fourth quarter as the online search leader's profit fell below analyst expectation for the first time since its August 2004 initial public offering. The news rattled previously bullish investors, causing Google's stock price to plunge by more than 15 percent.
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The Mountain View, Calif-based company said Tuesday that it earned $372.2 million, or $1.22 per share, for the final three months of 2005. That represented an 82 percent increase from net income of $204.1 million, or 71 cents per share, in the previous year.

If not for a donation to launch its charitable foundation and stock compensation expenses, Google said it would have earned $1.54 per share. That missed the average estimate of $1.76 per share among 31 analysts surveyed by Thomson Financial.

Google released its results after the stock market closed Tuesday. Company shares plunged $66.93 -- 15.5 percent -- in after-hours trading after gaining $5.84 to close at $432.66 Tuesday on the Nasdaq Stock Market. The downturn wiped out roughly $20 billion in shareholder wealth.

The investor backlash also stung Google's two biggest rivals, Yahoo Inc. and Microsoft Inc. Yahoo's shares fell 83 cents, or 2.4 percent, after shedding 68 cents to close at $34.38 on the Nasdaq, where Microsoft's shares gained 15 cents to close at $28.15 before retreating by 21 cents in after-hours trading.

Google's revenue for the period totaled $1.92 billion, an 86 percent increase from $1.03 billion in the prior year. After subtracting commissions paid to Google's advertising partners, the company registered fourth-quarter revenue of $1.29 billion, matching analyst expectations, according to Thomson Financial.

CEO Eric Schmidt told analysts during a Tuesday conference call that the fourth-quarter results topped the company's internal projections. Management has steadfastly refused to publicly project its earning potential, making it difficult for analysts to reach the calculations that investors depend on for appraising a company's value.

A much higher tax rate during the fourth quarter accounted for the bulk of Google's earnings shortfall, Chief Financial Officer George Reyes said during the conference call.

The company's effective tax rate in the fourth quarter was nearly 42 percent, well above the roughly 30 percent rate during the second and third quarters. Google also expects its 2006 tax rate to be about 30 percent.

Google's fourth-quarter letdown marks the first major test of Wall Street's appetite for a stock that investors had been hungrily buying while the company churned out an uninterrupted string of pleasant earnings surprises.

The company's earnings had exceeded analyst estimates by at least 14 cents per share in each of its previous five quarters since its much-ballyhooed IPO. Google's quarterly profits had at least doubled in each of those quarters, too.

The robust performance had helped establish Google as one of the nation's most valuable companies, with its stock trading as high as $475.11 earlier this month. Most industry analysts have continued to recommend buying the stock, predicting the shares would climb above $500 and perhaps reach $600 by year's end.

But some investors began to fret about Google's earnings momentum two weeks ago when Yahoo released a fourth-quarter profit that fell a penny below analyst estimates. That news raised fears that the Internet's advertising market didn't expand as much as most people anticipated during the pivotal holiday shopping season.

The jitters surrounding Google were exacerbated after the company vowed to fight a Bush administration subpoena demanding one week's worth of search requests as the federal government seeks to revive a law designed to shield children from online pornography.

Google then provoked more angst by launching a new search engine in China that will censor some results to comply with the country's free-speech restrictions

[FAX]

Buy.

FAX

[JBucc]

Ok then

[Stinger]

Buy.

FAX
http://www.dsm.fordham.edu/~pkelly/DVD%20Images/Paramount/trading_places_pic6.jpg

So how'd you guys make out today?

[robags0817]

hwo bout i was gonna take the oprions on the put and take for google today all i needed was a 20 point drop or gain but i didnt want to man up and pay the 4800 that was necessary to straddle, so I didnt and I would ahve made a killing .....what a box

[Logical]

What are oprions?

I have an MBA and have no clue.

[beavis]

hwo bout i was gonna take the oprions on the put and take for google today all i needed was a 20 point drop or gain but i didnt want to man up and pay the 4800 that was necessary to straddle, so I didnt and I would ahve made a killing .....what a box
kcnut becomes a day trader.

[ChiefsfaninPA]

What are oprions?

I have an MBA and have no clue.

Neither does he, he went to Stock oprions for dummies and quickly posted all the he managed to learn from there to make it seem like he has investment smarts.

[robags0817]

verry funny Actually I know enough to realize that I made a mistake by not straddling the stock considering it had 3 20 point swings last month on speculation only, now they ahve a earnings statement today, and you have to figure a stock that is so popular will go up or down more than 20 points once they release their earnings for the previous quarter, as well as th forecast for the next. I'm pretty sure I didn't learn that today but you may think whatever you like.

[robags0817]

but than again you kansas city boys definately know more about the stock market than this kid from NY. I read an investing for dummies book..........at least I can read.....jk calm down dont get defensive!!!!

[Bowser]

There goes the house in the Caymans.

*sigh*

[ChiefsfaninPA]

but than again you kansas city boys definately know more about the stock market than this kid from NY. I read an investing for dummies book..........at least I can read.....jk calm down dont get defensive!!!!

Okay NY boy, if you knew anything about investing or the mid west you would know the second richest man in america resides in omaha, nebraska. And he purposely doesn't live in NY. Probably because of investment genious like you. Do you even know anything about googles business besides there stock is ridiculously overpriced.

[Fat Elvis]

but than again you kansas city boys definately know more about the stock market than this kid from NY. I read an investing for dummies book..........at least I can read.....jk calm down dont get defensive!!!!


Geographic proximity doesn't necessarily make someone more knowledgable on a topic. Being in NY doesn't make you more of an expert on the stock market than someone in KS. Heck, I live in KS, and I'm positive you know more about horseshit than I ever will.

[robags0817]

yes thats it a man decides to reside in nebraska because of people who invest in the market. That is a really ingenious statement. and yes I know enough about google I would be happy to answer any questions you would have sir.

[robags0817]

It was a joke and I was not insinuating because the nyse is in Ny I know more than you do, It was a simple this Ny boy knows nothing and you kc boys know everything because that was what was implied when he stated that I read a investing for dummies book.

[Reaper16]

Buy.

FAX
If I had the available funds, I would.

[robags0817]

But I am almost certain I know enough about the stock market and anyone who can argue that starddling this stock early in the day was a bad idea I would welcome their opinion and actually urge them to express it. Because as I see it a 73 point drop would have paid me a significant amount of money.

[robags0817]

correction "straddling" this stock before i get rippd to shreds for my error

[robags0817]

I'm still waiting for you you knows sooooo much abou investing to explain to me "the investing for dumies guy" why I shouldnt have straddled that stock today?

[ChiefsfaninPA]

I read a investing for dummies book.


You should reread it and come back with a better term than straddling. I am sure you are the best day trader ever created. You sound like the fools who lost it all during the last tech bubble.

[ChiefsfaninPA]

I'm still waiting for you you knows sooooo much abou investing to explain to me "the investing for dumies guy" why I shouldnt have straddled that stock today?

You can straddle anything you want. I could care less.

[ChiefsfaninPA]

yes thats it a man decides to reside in nebraska because of people who invest in the market.


Just showing you that residing in NY doesn't make you a stock expert. By the way he was born in omaha also.

[robags0817]

taht wasn't the point I was trying to make I thought I clarified that already... I am done with you you are not making any sense

[ChiefsfaninPA]

taht wasn't the point I was trying to make I thought I clarified that already... I am done with you you are not making any sense


The only one not making sense is you. Why don't you try using spell check or at least attempt to spell the words correctly, you aren't even misspelling difficult words. With spelling like that, how do you get any trading done, your dumbass probably bought the wrong stock. You can't even spell the three or four letter ticker symbols needed to execute a trade. Sorry you didn't get to straddle anything today, cheer up there is always tomorrow.

[Skip Towne]

I'll bet Denver Chief would like to have a guy who straddles.

[ChiefsfaninPA]

I'll bet Denver Chief would like to have a guy who straddles.

This fellow from NY, seems to be looking for something to staddle since he didn't get a chance to straddle google.

[Skip Towne]

This fellow from NY, seems to be looking for something to staddle since he didn't get a chance to straddle google.
Yeah, I agree, he really should have straddled.

[ChiefsfaninPA]

I'm still waiting for you you knows sooooo much abou investing to explain to me "the investing for dumies guy" why I shouldnt have straddled that stock today?


This is the same guy who was posting about how much money he lost gambling. So now we can add his stock market gambling to his tally. Bet he has lost a lot.

[robags0817]

ok your a chiefs fan form PA i could buy and sell you 10 times over you loudmouth tough guy who thinks his shit don't stink. remember your over a computer so you can be a wiseass al you like tough guy. I'll take my salary and my sock options over your shittty job and life out their in pa you loser

[ChiefsfaninPA]

ok your a chiefs fan form PA i could buy and sell you 10 times over you loudmouth tough guy who thinks his shit don't stink. remember your over a computer so you can be a wiseass al you like tough guy. I'll take my salary and my sock options over your shittty job and life out their in pa you loser

I bet you would. I am not being a loudmouth, I am just speaking the truth. Let me guess because YOUR from NY you are the baddest MO-FO around. F^&% you, keep trading your stocks, and who cares about your salary, I lived on the Mickey D's salary throughout high school. It's time for you to get a real job.

[ChiefsfaninPA]

i could buy and sell you 10 times over

Not after passing up all of that straddling today.

[robags0817]

ok tough guy you keep workin at micccy d's and I'll keep making money thanks

[ChiefsfaninPA]

ok tough guy you keep workin at micccy d's and I'll keep making money thanks


One thing I learned, people who talk about how much money they make, make little to none. I could care less about your salary or stock onions(or however you f#$%$# up spelling options), the reality is you have no freaking clue what you are talking about. You do a little research on this world wide web and now you are Charles fugging Schwab. Give me a break. Trade on.

[Fat Elvis]

You should reread it and come back with a better term than straddling. I am sure you are the best day trader ever created. You sound like the fools who lost it all during the last tech bubble.


Actually, if you know anything about stocks, you'd know what straddling means. It is an options strategy designed to mitigate risk while at the same time maximizing profits on a volitile stock. With straddling, it doesn't really matter which way a stock moves as long as it moves. In this instance, GOOG was a great stock to straddle from the IPO on....

[robags0817]

thank you Elvis I was going to try to convince this moron that it was a real term and that it was a goo idea but he began with the insults rite off the bat because I didn't take the time to spell check because I type to fast and don't really care how my spelling is on a message board as long as you get the picture. Thank you for being the only one apparantely who realizes what I was saying instead of calling me an idiot who read some investing book, because I used a word that this moron though was dumb.

[Mr. Laz]

great ...

but at 400 dollars per share you need a huge invested to make any kind of money.


average investor needs to stay with stocks under a 100 bucks per

[robags0817]

NO laz if you read you will see options are cheaper you receive 100 options at a lesser value than the actual stock. In this case to tkae the put/take which in turn means that I am "straddling" that would have cost me 4800. Than I would have needed a 20 point move up or down, which I received after hours with google's earnings statement which led to a 73 point drop. But as I said I didnt pull the trigger in the afternoon yesterday before all this happened because I am closing on a house next monht and didn' wnat to risk that much money.

[ChiefsfaninPA]

Actually, if you know anything about stocks, you'd know what straddling means. It is an options strategy designed to mitigate risk while at the same time maximizing profits on a volitile stock. With straddling, it doesn't really matter which way a stock moves as long as it moves. In this instance, GOOG was a great stock to straddle from the IPO on....


I have no problem with his use of the term straddling, I do know what it means, though I have never performed this type of transaction. My whole point is this world is full of morons like him who AFTER the fact always should've done something that they act like they know something about. He was probably watching Mad Money or some other program that gave him the brilliant idea of what he should've done.

[robags0817]

If you watch mad money you know that Jim Crame ris not aloud to speak on a subject like that especially the day before the eraning statement went out. you are digging yourslef a bigger whole with your allegatuions because it shows what kind of a moron you really are.

[Donger]

If you watch mad money you know that Jim Crame ris not aloud to speak on a subject like that especially the day before the eraning statement went out. you are digging yourslef a bigger whole with your allegatuions because it shows what kind of a moron you really are.

Personal attacks are not aloud.

[ChiefsfaninPA]

If you watch mad money you know that Jim Crame ris not aloud to speak on a subject like that especially the day before the eraning statement went out. you are digging yourslef a bigger whole with your allegatuions because it shows what kind of a moron you really are.


Read the post, it said you PROBABLY not you did. Aren't you supposed to be busy trading. You shouldn't have time for morons like me. Come on there money to be made, go make some.

[robags0817]

you have to be one of the stupidest people I have ever met by far. I made the whole thing up you got it I made the whole thing up to look like a genious on a chiefs message board. maybe that is something you would do, but I wouldn't. You are seriously retarted

[robags0817]

and no im not a day trader im a pharmaceutical sales representative, who probably knows more about the marketthan your ignorant ass.

[ChiefsfaninPA]

and no im not a day trader im a pharmaceutical sales representative, who probably knows more about the marketthan your ignorant ass.

Why don't you try selling those drugs to doctors instead of using them.

[ChiefsfaninPA]

I made the whole thing up you got it I made the whole thing up to look like a genious on a chiefs message board. maybe that is something you would do, but I wouldn't. You are seriously retarted


I have no clue what you would go on a message board and make up. I won't put it above especially after reading your post.

[Calcountry]

Geographic proximity doesn't necessarily make someone more knowledgable on a topic. Being in NY doesn't make you more of an expert on the stock market than someone in KS. Heck, I live in KS, and I'm positive you know more about horseshit than I ever will.ROFL

[Calcountry]

correction "straddling" this stock before i get rippd to shreds for my errorHere is something that you obviously don't know about Google. IF you have the Google toolbar, there is a little ABC check tool on the bar, use it before posting please

[ChiefsfaninPA]

It's a good thing that he only sells the drugs and doesn't write prescriptions for them. With spelling like that it is no wonder people get the wrong meds.

[Calcountry]

ok your a chiefs fan form PA i could buy and sell you 10 times over you loudmouth tough guy who thinks his shit don't stink. remember your over a computer so you can be a wiseass al you like tough guy. I'll take my salary and my sock options over your shittty job and life out their in pa you loser Your dumb. You need to take you're money and get an edjumacation.

[Calcountry]

and no im not a day trader im a pharmaceutical sales representative, who probably knows more about the marketthan your ignorant ass.Perhaps typing is the problem, hunting and pecking can be murder on a fast moving bb.

[robags0817]

that was gay

[Calcountry]

thank you Elvis I was going to try to convince this moron that it was a real term and that it was a goo idea but he began with the insults rite off the bat because I didn't take the time to spell check because I type to fast and don't really care how my spelling is on a message board as long as you get the picture. Thank you for being the only one apparantely who realizes what I was saying instead of calling me an idiot who read some investing book, because I used a word that this moron though was dumb.That is completely inconsiderate. That is why you are getting harassed about it. Do you know how fuggin painful it is to read and try to make sense of the English language when it is fugged up like that?

[Calcountry]

NO laz if you read you will see options are cheaper you receive 100 options at a lesser value than the actual stock. In this case to take the put/take which in turn means that I am "straddling" that would have cost me 4800. Than I would have needed a 20 point move up or down, which I received after hours with Google's earnings statement which led to a 73 point drop. But as I said I didn't pull the trigger in the afternoon yesterday before all this happened because I am closing on a house next month and didn't want to risk that much money.The less you bet, the more you lose when you win. I didn't even learn that one in college.



6 spelling errors fixed for you. :)

[robags0817]

cmon bunny it is painful if i spell a word and leave out a l on the end of the word, or not hit the space bar and leave two words together. I am sorry but I don't think it is that big of a deal.

[skye22f]

But I am almost certain I know enough about the stock market and anyone who can argue that starddling this stock early in the day was a bad idea I would welcome their opinion and actually urge them to express it. Because as I see it a 73 point drop would have paid me a significant amount of money.

It's not necessarily a good idea, as near earnings time near-the-money options on stocks like this are going to be very expensive because a huge swing in price one way is relatively certain.

I don't know what exactly you were aiming at, but I'll make something up that you might think would be brilliant...

Yesterday GOOG closed at 433 or so, right now it's at 396.7. Say you bet on a 20 pt move, so you bought Feb 410 puts and Feb 450 calls at close yesterday.

Right now those calls that you paid $1930 for are worth only $190. You lost $1740.

Your puts went from worth $1600 to worth $2150.

So in total (without counting slippage [which can be a bitch with options] or commissions), you lost $1190. Great play.

[robags0817]

the put and take options were 2400 each yesterday, after the 73 point after market trading I would have made about 15 k

[BIG_DADDY]

I have a very good friend with a HUGE positon as his wife is part of the venture capital group that took them public. They are insiders so all they can do is just watch it drop right now.

[skye22f]

the put and take options were 2400 each yesterday, after the 73 point after market trading I would have made about 15 k

Hahaha a take option? I guess that's a new kind I've not heard of.

I don't think there was a 73 point swing in after market trading, it's 73 points off it's high. I'm looking here, and that's what it looks like to me.

http://finance.yahoo.com/q/bc?s=GOOG&t=5d

What month, what price, what kind of options? Spell it out for me exactly what you would have done and what it's at now. Use this.

http://finance.yahoo.com/q/op?s=GOOG

[robags0817]

i call the call options take

[robags0817]

forget it dude it aint worth it to me the 36 point drop you see was a rebound in the early market today the after market made the drop of 73 points yesterday I am telling you that. I'm not goign into the whole thing again if you like you can scroll back and see what I did.

[Fat Elvis]

I have a very good friend with a HUGE positon as his wife is part of the venture capital group that took them public. They are insiders so all they can do is just watch it drop right now.

They've still made a bundle. A really, really, really big bundle even after the drop.

[Dartgod]

If you watch mad money you know that Jim Crame ris not aloud to speak on a subject like that especially the day before the eraning statement went out. you are digging yourslef a bigger whole with your allegatuions because it shows what kind of a moron you really are. ROFL Irony, thy name is robags0817...

[skye22f]

forget it dude it aint worth it to me the 36 point drop you see was a rebound in the early market today the after market made the drop of 73 points yesterday I am telling you that. I'm not goign into the whole thing again if you like you can scroll back and see what I did.

You are full of it man. Straddling GOOG today would be a bad move because the risk premiums on those options are just too high.

[robags0817]

straddling google yesterday was the move you are misinformed

[robags0817]

ok lets jsut agree to disagree I feel I shoudl have straddled it yesterday and you people feel I shouldnt have thats greta moving on. I know you have nothing else to talk about it must be boring out their in west bumble**** wherever you are and can't let anything die, but just continue to throw in annoyign little comments how is my spelling here check it because thats all you have to do in your boring life. dam some poepl are pathetic

[FAX]

me no speakie robags.

FAX

[Dartgod]

ok lets jsut agree to disagree I feel I shoudl have straddled it yesterday and you people feel I shouldnt have thats greta moving on. I know you have nothing else to talk about it must be boring out their in west bumble**** wherever you are and can't let anything die, but just continue to throw in annoyign little comments how is my spelling here check it because thats all you have to do in your boring life. dam some poepl are pathetic...

[Calcountry]

ok lets jsut agree to disagree I feel I shoudl have straddled it yesterday and you people feel I shouldnt have thats greta moving on. I know you have nothing else to talk about it must be boring out their in west bumble**** wherever you are and can't let anything die, but just continue to throw in annoyign little comments how is my spelling here check it because thats all you have to do in your boring life. dam some poepl are patheticAfter a post like this, I wood ban this peace of shit, if I wear a mod.

[robags0817]

no need im dont posting here you actlike this place is holy ground

[FAX]

I think you mean wholy ground, Mr. robags.

FAX

[Calcountry]

...I am laughing so hard at this dumfug that My bronchitis is kicking up a bolus.

[Calcountry]

no need im dont posting here you actlike this place is holy groundROFL The hits keep on coming.

[Donger]

no need im dont posting here you actlike this place is holy ground

WTF?

[Calcountry]

WTF?reed the hole thread, it shilarrio us.

[Chief Pote]

no need im dont posting here you actlike this place is holy ground

Oh man...my stomach hurts from laughing so hard.

[Chief Pote]

Oh hell no... don't ban him. The comedy is golden.

[Calcountry]

robags, I wnat to laf someeore, plees come bak her an pose some moor stuff

[beavis]

After seeing robags0817 post on this thread, I think I'm starting to believe John Kerry.

[Calcountry]

After seeing robags0817 post on this thread, I think I'm starting to believe John Kerry.ROFL

[ChiefsfaninPA]

I wonder if Mr. Teabags was so finished with us why he is still logged in here. He must've missed us.

[Calcountry]

I wonder if Mr. Teabags was so finished with us why he is still logged in here. He must've missed us.Or, it is another one of Phil's alias.

He did spell, Genious(CP), and retarted(CP) correctly. Since he coulnd't spell anything else correctly, I found that kind of odd?

[Logical]

ok lets jsut agree to disagree I feel I shoudl have straddled it yesterday and you people feel I shouldnt have thats greta moving on. I know you have nothing else to talk about it must be boring out their in west bumble**** wherever you are and can't let anything die, but just continue to throw in annoyign little comments how is my spelling here check it because thats all you have to do in your boring life. dam some poepl are pathetic

Dude it is not just spelling, it is grammar, structure, thought cohesiveness and lack of logical flow. Your posts are unintelligible. Being lazy about spelling is one thing what you are doing is butchering the language.

[Calcountry]

...

I just needed another good laugh.

[ChiefsfaninPA]

Should I attempt to straddle now?

[Bugeater]

Make sure that you first take the oprions on the put.

[Rausch]

Should I attempt to straddle now?

Apple is trying to buy Disney.

Just saying... :)

[Fat Elvis]

Should I attempt to straddle now?

Actually, if you were in before the conference call, you would of made a killing with a straddle....

[Inspector]

I went to the stock market but all they had were cows.

[Hog's Gone Fishin]

I went to the stock market but all they had were cows.


That'sastockyardyouidiot!

[Iowanian]

If this dripping pickle has a job that doesn't require a hair net, given his written communication skills, there is a manager who should be terminated today.

Selling weed doesn't really mean you're in pharmasudical sales, sport. If you are...you need to lay off the percoset you're stealing.

I get it...Daddah owns the compuhnay, eh forrest?

ok your a chiefs fan form PA i could buy and sell you 10 times over you loudmouth tough guy who thinks his shit don't stink. remember your over a computer so you can be a wiseass al you like tough guy. I'll take my salary and my sock options over your shittty job and life out their in pa you loser

[Calcountry]

Originally Posted by robags0817
ok your a chiefs fan form PA i could buy and sell you 10 times over you loudmouth tough guy who thinks his shit don't stink. remember your over a computer so you can be a wiseass al you like tough guy. I'll take my salary and my sock options over your shittty job and life out their in pa you loser.

Just classic. I think I will never go out their again.

[ChiefsfaninPA]

Originally Posted by robags0817
ok your a chiefs fan form PA i could buy and sell you 10 times over you loudmouth tough guy who thinks his shit don't stink. remember your over a computer so you can be a wiseass al you like tough guy. I'll take my salary and my sock options over your shittty job and life out their in pa you loser.

Just classic. I think I will never go out their again.

I am still waiting for him to buy me. Maybe with all of those oprions he can offer me a nice compensation package with some oprions.

[Iowanian]

He could "buy and sell" you 10 times.....but couldn't scrape the $4800 together and come up with a downpayment by summer.

pfffffffffffffffft.

Thats not small scratch for most people....but then again, most people aren't acting like they're working on Oprah's budget.