Google revenue expectations fell short by nearly $300 million in 4Q 2011, leading to disappointment in the investment sector. Does this signal the demise of the top search engine in the world?
Actually, this "shortfall" needs to be put in perspective. Wall Street analysts predicted Google (Nasdaq: GOOG) would rake in $8.4 billion for the 4th Quarter of 2011, but actual earnings were reported at $8.13 billion. That $270 million gap has analysts running scared and is starting the rumor mill that Google is losing its Midas touch.
The drop off in revenue is being blamed on two major factors: Google's ad rates underperforming in the European market, and the company actually shooting itself in the foot by rolling out its own social network Facebook challenger, Google+. Seems GOOG is competing with itself!
But the gloomy news is offset by the fact that the company posted a 25 percent increase in revenue over the same fiscal quarter in 2010. So what's the problem here?
$270 million in missed revenue would be a gigantic headache for lots of smaller companies, and even smaller nations. But for the top search engine on the planet, it's a drop in the bucket. Is it really cause to go running for the hills?
It's just another manufactured money crisis engineered by the dollar Gods in charge. When investors are fat, dumb and happy, it's bad for business. It's actually sickening to see people getting all worked up over nothing. Unless there's a master plan behind the hysteria. After all, Google has met or exceeded its revenue projections for 9 quarters straight!
It'll be interesting to see how this plays next year if the company doesn't meet its projections for the year end 2012. Oh wait...
There isn't going to be a next year...
Sell! Sell! Sell!
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Comments: 14
that is the same attitude that destroyed the auto, steel, coal and many other industries in this contry.
that is like saying - you earn 45,000 a year, and that is more than enough to spendable income - while ignoring taxes, insurance, fica, your house payment, gas bill, phone, auto, groceries, and all the other things that GROSS income pays for - oh - and in googles case - dont forget the pay to all the employees!
and then consider this - if YOUR income was 5% less that you expected - how woult you payu all those frixed espenses, that dont go away?
30 years later - same people sittin on same bar stools, swearing the mines would be back 'any day now - cause the owners were losing money by bein closed'.
the mistake is making decisions on financials, without knowing the difference between gross income, net income, net net, npatui, roa, roe, and roi.
you should be thankful you dont have money to buy stock - you would lose 100% of it.
"If I had the money I would be buying tons of stock in Google right now! Everyone freaked out and sold, but they will realize their mistake in time and regret it. "
the fact that they did not meet expectations already takes into account the changes they had made - that is what analysts do.\
and being short in gross proceeds, is a huge deal, because so many of their expenses are fixed, and unrelated to the amount of revenue they receive.
but i tell ya what - you wanna debate whether it is good or bad?
tell me what the following means; roa, roi, ros, current ratio, quick ratio, npaui, and how they are calculated, as well as how the norms for the industry google is on.
can you answer any of that without research?
if not, you have not the first iota of qualifications to make comments on their gross revenue.