Jul
19
Google Misses Estimates - Stock Down 7%
July 19, 2007 |
Today is a good day not to own Google (GOOG) stock. Here is the summary from Tech Trader Daily:
Revenues were $3.87 billion, or $2.72 billion ex-TAC, with pro forma EPS of $3.56; the Street was looking for $2.68 billion revenues ex-TAC, and $3.59 a share.
Other metrics: Google sites revenue, up 74% year-over-year; partner sites revenue up 36%. International was 48% of revenue. Paid clicks were up 47% from a year ago, but flat versus the first quarter. (That can’t be good…can it?)
The company finished the quarter with $12.5 billion in cash.
Headcount at quarter end stood at 13,786, up from 12,238 one quarter earlier.
After hours, GOOG is down $28.59, or about 5%, at $520.
Brian White, who was liveblogging the conference call summed it up with:
2:28pm — that’s it! Google’s Q2 presentation is over, and again, the company quashed analyst estimates in perfect Google fashion (with a giant, virtual sledgehammer). Will Google shares start heading towards $560 in the morning? You never know.
Well, right now, it is down to $508.59 from a high of $553.
For the tech site of things, Larry Dignan goes into details on ZDNet and puts the overall data into perspective:
- Content fingerprinting is near? Experiments are running and working quite well, said Google officials. The company plans to deploying the technology in the “near future.” Brin noted there haven’t been any serious impediments to rolling it out.
- Executives were mum on metrics behind new print and radio advertising initiatives. When asked about whether the print and radio advertising projects would add material revenue, executives said early adoption was good. However, it’s far too early to project anything. “We really need to prove this model before advertisers and publishers before we scale it,” said Brin.
- Display and video advertising will be a big part of Google’s revenue mix–someday. Today, display and video advertising amount to nothing more than a rounding error for Google. Executives noted that they expect display and video ads to contribute in the future. This assertion probably assumes that Google closes its DoubleClick purchase.
- EBay’s pullback didn’t hurt Google. Officials noted that eBay’s recent move to pull Google ads didn’t impact the quarter. While it’s true eBay changed its advertising spending plans, Google executives argued that the search giant was delivering the highest quality ad.
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Google did indeed come up with a miss today - no doubt about it. But is it fair to state, as some reports have, that the stock “tumbled” after hours? For further consideration click here:
http://sneakybusiness.typepad.com/sneaky/2007/07/google-misses-s.html