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Google got hit hard today

by cbader
20 replies
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Lost $24 billion in it's market cap, trading got halted. An accidental early release of it's earnings came out.

Google shares suspended as 20% drop in profits accidentally revealed early | Mail Online
  • Profile picture of the author Greg71
    Maybe some traders actually used the site and didn't like the results from 2008 on the first page.
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  • Profile picture of the author thunderbird
    Nice to see some good news for once.
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  • Profile picture of the author kenmichaels
    I wonder what it like to be able to lose that much money and still survive.

    actually on second thought.. i wonder what its like to have just the amount they lost.
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  • Profile picture of the author ayamkampung
    perhaps they have penalized too much adsense sites. now they got burnt instead
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    • Profile picture of the author thunderbird
      Originally Posted by ayamkampung View Post

      perhaps they have penalized too much adsense sites. now they got burnt instead
      Yes, the Google geniuses lose revenue that way too.
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  • Profile picture of the author thunderbird
    "Another problem for the company, which is overwhelmingly reliant on search-based advertising for its revenue, is that advertisers have slashed payments to the search giant as consumers turn towards mobile devices."

    Read more: Google shares suspended as 20% drop in profits accidentally revealed early | Mail Online
    Follow us: @MailOnline on Twitter | DailyMail on Facebook

    Google does advertise on mobile devices. Maybe less companies are advertising with Google because Google advertising is so d@mn expensive compared to say, Linkshare.
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  • Profile picture of the author RyanEagle
    That was a bad hit in a matter of 8 minutes!
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    • Profile picture of the author HeySal
      Originally Posted by RyanEagle View Post

      That was a bad hit in a matter of 8 minutes!
      Yeah it was. It was fast enough that I don't trust exactly trust that what happened is as explicit as the figures show. On the other hand, the SE has pissed off a LOT of their own customers in the recent past. I'm thinking that there is more of a purposeful stock drop going on right now. What I want to know is where the stocks were dropped from. Was it a wide flow of stockholders dropping it suddenly or just one or two major investors?
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      • Profile picture of the author cbader
        Originally Posted by HeySal View Post

        Yeah it was. It was fast enough that I don't trust exactly trust that what happened is as explicit as the figures show. On the other hand, the SE has pissed off a LOT of their own customers in the recent past. I'm thinking that there is more of a purposeful stock drop going on right now. What I want to know is where the stocks were dropped from. Was it a wide flow of stockholders dropping it suddenly or just one or two major investors?
        I'm sure a lot of high frequency trading kicked in, the majority of market trading is not human anymore. Then they request a halt on trading. They are still down today.

        I agree with the comments on the ads above and pissing off customers. I believe the ads are 90% of their business.
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  • Profile picture of the author Dan Grossman
    Probably a few large investors whose automated bots picked up the news story, saw that they missed estimates by 5%, and automatically sold stock within seconds. Even more investors bots see large sale orders that weren't expected that day (since earnings weren't due out yet) and automatically sold too, to make sure they weren't holding what was about to be a loser for some reason. Bots following bots cause huge selloff until the index halts trading to stop it and let some humans actually fix their trades.

    Not sure why some of you are insinuating that Google is doing worse because of AdSense terminations or anything else. Revenues grew from $7.5 billion 3rd quarter last year to $11.33 billion this year. That's $3.8 billion MORE revenue, not less.
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    • Profile picture of the author RyanEagle
      Originally Posted by Dan Grossman View Post

      Not sure why some of you are insinuating that Google is doing worse because of AdSense terminations or anything else. Revenues grew from $7.5 billion 3rd quarter last year to $11.33 billion this year. That's $3.8 billion MORE revenue, not less.
      They probably based it on the bad fall in SE.lol
      I wonder what happened to Google in the next hour or so after that fall.
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    • Profile picture of the author ayamkampung
      Originally Posted by Dan Grossman View Post

      Revenues grew from $7.5 billion 3rd quarter last year to $11.33 billion this year. That's $3.8 billion MORE revenue, not less.
      adsense revenue growing?

      this is quoted from the news
      In the latest quarter, sales of the ads rose 15%, but that was down from 39% growth a year ago.

      Driving the declining prices for the ads was the shift by advertisers toward mobile ads, analysts said.


      sounds like conflicting statement



      source

      Google Hit by Weak Results - WSJ.com
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      • Profile picture of the author cbader
        Originally Posted by ayamkampung View Post

        adsense revenue growing?

        this is quoted from the news




        sounds like conflicting statement



        source

        Google Hit by Weak Results - WSJ.com
        The rate of growth is dropping. Revenue is up, but profits are down 26% due to the cost of buying Motorola. That purchase was bad, as it's under performing.

        So, yeah not as bad as it sounds for adsense, it's still growing but at 1/2 the rate as last year which is reason enough for many people to get spooked and sell the stock. Their P/E ratio is at 21, still way above the long term average of 16. If they are not growing as fast, than the price of the stock isn't justified.
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  • Profile picture of the author HeySal
    Be interesting to know who exactly those investors were, Dan, if it was just a few investors. It's a possible that it was bots - but if it wasn't, I wanna know who it was.
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    • Profile picture of the author cbader
      Originally Posted by HeySal View Post

      Be interesting to know who exactly those investors were, Dan, if it was just a few investors. It's a possible that it was bots - but if it wasn't, I wanna know who it was.
      Other than bots, consider that if people want to sell their mutual funds, or tech funds, then the managers MUST sell stock in order to pay out their holdings to customers. These funds can be huge and can make a big difference when everyone panics at once, which is why I prefer closed ended funds.
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  • Profile picture of the author SJJPFTW
    :Ouch. Wonder wh will happen to the printing service that delivered the earning reports early
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  • Profile picture of the author fghaegele
    Google is "too big to fail."

    Now pardon me whilst I make a sandwich out of the above words.
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    • Profile picture of the author m4dcoder
      Originally Posted by fghaegele View Post

      Google is "too big to fail."

      Now pardon me whilst I make a sandwich out of the above words.
      Microsoft was too big to fail. But now they continuously loosing Maybe another company is coming to rule after Google.
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      • Profile picture of the author Dan Grossman
        Originally Posted by m4dcoder View Post

        Microsoft was too big to fail. But now they continuously loosing
        Losing, not loosing.

        And they seem to be doing pretty well to me.

        20 years ago Microsoft was earning about $800 million a quarter in revenue.

        10 years ago Microsoft was earning about $6 billion a quarter in revenue.

        5 years ago Microsoft was earning about $12 billion a quarter in revenue.

        This year Microsoft is earning about $20 billion a quarter in revenue.

        I don't have a Ph.D. in math, but those numbers seem to be going up, not down.
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      • Profile picture of the author derekwong28
        Originally Posted by m4dcoder View Post

        Microsoft was too big to fail. But now they continuously loosing Maybe another company is coming to rule after Google.
        Microsoft's revenue kept on increasing, but their share price have languished since Ballmer took over. Their core Windows business is definitely going down. There increase in revenue is being covered by less profitable ventures as the Xbox. The same thing may happen to Google. Some of the revenue increase is due to their acquisition of Motorola, but it could be ages before Motorola is turned around.

        At least Microsoft is a much more likable company now. In the past several years, we have attacks upon attacks by Google on small webmasters and businesses. Besides Panda, Penguin and EMD, there were other updates that targeted small e-commerce sites, article directories and unnatural link building. You also have the mass banning and adsense and adwords accounts. Now you can't even use Adwords to buy ads for many long tail keywords because Google will not show them.

        They say it is all done in the name of getting quality results. But in reality, the main aim is to force people to use Adwords. Just how otherwise could a new sites obtain natural links without traffic? Small webmasters are now left to eat the scraps off Google's table. Soon we will have to eat their vomit, urine and faeces as well.
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