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
    Andre, 1 Feb 2006 @ 1:38pm

    All things Google

    This is what I hate about Wall Street analysts; they much favor growth over profitibility. A highly profitable company with little growth (i.e. Microsoft) has it's stock negatively impacted, while a limited or no profit company with huge growth (even if it is still losing money) sees large increases in stock price. I also don't see how Googles stock price can be sustained. After all, at its core, Google is still a company that derives 98% of its revenue from a service that customers hate - advertising!

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