NASDAQ @ 2744.17, -31.45 (-1.13)
Google @ $695, -$60.49 (-8.01%)
Bizarre, unheard of, and "by mistake".
It appears that Google has mistakenly declared its quarterly performance early as opposed to after the bell as planned and commonly seen with US companies.
The results outlined 3rd quarter earnings of $9.03 per share which was substantially short of analysts forecasts of $10.65.
This produced a significant fall of around 10% in the share price prior to its shares being suspended at around 12:50 until 3:20 New York time (Google shares suspended as premature results stun Wall Street), and then recovering slightly to close 8.01% down
Such a fall on such a share tied a big albatross around the NASDAQ which has itself closed more than 1% down.
Reports suggest that search and advertising revenues have suffered with users possibly bypassing Google for Amazon/App searches on Mobile devices (Google's results miss analyst forecasts: reaction). The company's acquisition of Motorola is also taking time to absorb with costs up around 71% (Google shares suspended as premature results stun Wall Street).
There is also a growing privacy and property issue to contend with as we accelerate towards a connected, cloud supported future.
Still the company remains the dominant search engine and with Chrome, Android, Cloud technology, and Motorola, Google continues to look like it can influence, shape and be at the heart of an internet and wireless dominated future.
But, its also worth noting that this is probably the 3rd big miss by Google in the last 2 years, as the company "invests" in capacity, innovation, and capability (occasionally at the short term expense of margins), but the shares have always recovered to new highs so it will be interesting to see if the same trick can be pulled off again. A further 10% and the shares might present another buying opportunity based on its previous bouncebackability.
Related article links:
- http://www.telegraph.co.uk: Google shares suspended as premature results stun Wall Street
- http://www.bbc.co.uk: Google shares suspended after profit results error
- http://www.telegraph.co.uk: Google results: mobile phones at the root of profit challenges
- http://www.telegraph.co.uk: Google's results miss analyst forecasts: reaction
Earlier Posts:
- Is Android a reason to invest in Google?
- Market valuations and Google's $12.5bn bid for Motorola.
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