The Market

by Mike Masnick




Google Missed? No... The Analysts Missed

from the back-to-work dept

We seem to be one of the few sites that didn't mention the big "miss" by Google in its earnings, but that's because, honestly, it didn't seem like that big of a deal. The growth was still tremendous. The real issue was simply that the Wall Street analysts did a bad job predicting how Google would do -- which isn't that surprising, since Google made it clear from the beginning that, unlike many other firms, it wouldn't make too much of an effort to give Wall St. really detailed info for future estimates. In other words, the "problem" isn't Google's, but an over-anxious Wall Street who wanted to believe Google could continue to defy gravity. That's why it's good to see that the "miss" doesn't seem to concern most folks in Silicon Valley, who can see through the Wall Street prism to recognize that this "hiccup" has almost everything to do with forecasting, rather than problems within Google.

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  1. identicon
    Mathew Ingram, 1 Feb 2006 @ 5:38pm

    Google

    Mike, with all due respect I think you (and many of your readers) are missing the point. It's not that analysts set their targets too high for Google -- which they undoubtedly did. It's that the company got its tax rate wrong in a big way, and that could be a sign of a bigger issue. Why did it get the tax rate wrong? Because it didn't sell as much in Europe as it thought. That's the real issue. Is it a big deal? Maybe not. But it's not Wall Street's fault.

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