ReveNews Online Revenue News & Opinions Since 1998

Google Announces Earnings

Google just announced it earnings today for Q4 last year.

The after hours traders has the stock down by over 15% in after hour trading. Earnings came in at $1.54/share when it was expected to surpass $1.76 a share, to ensure that the stock did not tank.

It’s trading at around $365 a share at the moment, down nearly $70 from it’s closing price. It exceeded revenue numbers, but not profits - and that’s what counts in today’s market.

I have a feeling that there will be some bargain buying tomorrow based on the after hours weakness.

In reality, at Google’s current PE, and investor would have to wait 80 years to recover their investment, assuming GOOG did not grow - but we all know that it will. Having visited the Googleplex twice in the past few months, my feeling is that they missed earnings due to R&D, capex and recruitment costs, more than margins - which are still healthy at about 30%. The other reason is possibly due to the separate pricing that they now allow on Adsense.

Once of the biggest reasons, I believe, that Yahoo is not earning as much as Google from search, is the inability for it to conduct global targeting. Yahoo maintains multiple marketplaces, but not globally applied, and Google therefore is eating up the smaller markets, (such as South Africa) and therefore 38% of Google’s revenues come from outside the US, whereas I’ll bet that Yahoo does not have as much of a hold.

I don’t think that GOOG shares will drop too much right now, and will probably be range-bound between $350 & $400 for quite a while, but what do I know?

V

Search Through 10 Years of ReveNews Content:

• We Support New York Affiliates

  

• Subscribe to ReveNews

  • Get ReveNews Updates in Your Reader
  • Get ReveNews Updates in Your Email

• The Latest Comments

  • Dave on McAfee SiteAdvisor
  • Linda Buquet on Performics Becomes Google Affiliate Network
  • Julian Moss on McAfee SiteAdvisor
  • George Reedy on How To Recruit Your 1st Affiliates…
  • Nick James on Should MyPoints Award Points for Political Action?
  • Mike Allen on Performics Becomes Google Affiliate Network
  • Mike Allen on Performics Becomes Google Affiliate Network
  • Durk Price on Performics Becomes Google Affiliate Network
  • Dragon on Reality Check: Shop.org Video
  • Google Affiliate Network on Performics Becomes Google Affiliate Network

• ReveNews Readers

• Archives

  Select Month June 2008 May 2008 April 2008 March 2008 February 2008 January 2008 December 2007 November 2007 October 2007 September 2007 August 2007 July 2007 June 2007 May 2007 April 2007 March 2007 February 2007 January 2007 December 2006 November 2006 October 2006 September 2006 August 2006 July 2006 June 2006 May 2006 April 2006 March 2006 February 2006 January 2006 December 2005 November 2005 October 2005 September 2005 August 2005 July 2005 June 2005 May 2005 April 2005 March 2005 February 2005 January 2005 December 2004 November 2004 October 2004 September 2004 August 2004 July 2004 June 2004

• ScratchBack Widget