Skip navigation
MOST POPULAR RELATED TAGS
  • TOPICS
  • SECTORS
  • COMPANIES
Tech Check Video Gallery
CNBC's Jim Goldman takes a look at a high tech healthcare tool that fits in a doctor's pocket.
Downloading the skills investors need to navigate the tech sector, with David Garrity, GVA Research, and CNBC's Jim Gold...
TECH CHECK STOCK INDEX
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...

TECH CHECK VIDEO

» More

Current DateTime: 02:51:22 06 Jul 2009
LinksList Documentid: 31047929
Expiration DateTime: 7/6/2009 2:52:29 PM

RSS FEED

» Help

Current DateTime: 02:51:22 06 Jul 2009
LinksList Documentid: 31047922
Tech Check
Text Size
Jan.31
4:39 PM ET
Thursday, 31 Jan 2008
Google Misses: Stuns Street And Stockholders

Google [GOOG  Loading...      ()   ] shareholders are licking their wounds in after-market trading tonight after the company surprised Wall Street by missing expectations on both the top and bottom lines. 

And when I say "surprised," I really mean "shocked." I've spoken to a two analysts since the numbers came out who can't talk publicly until they release their own research to clients, but they're stunned by the miss. Such is the price for a company that doesn't offer guidance. And investors are the ones stuck paying it.

Google reported $3.39 billion in revenue, excluding traffic acquisition costs, or TAC, compared to Wall Street estimates in the category of $3.45 billion. Google also reported $4.43 in non-GAAP earnings per share, the apples-to-apples comparison to the Street consensus of $4.44.

The "miss" immediately took its toll on Google shares, sending them lower by almost 5 percent after the company spent much of the day erasing earlier losses and going positive by 4 percent just as the market closed.

Most shocking is the steep decline in paid clicks, one of the best metrics to measure Google's underlying advertiser strength. Yes, Google posted a 30 percent gain, year over year for the fourth quarter, but only a 9 percent sequential improvement from the company's third quarter. Bear Stearns, for one, anticipated a 10 percent increase; Piper Jaffray was at 14 percent; Citigroup was at 20 percent.

For comparison purposes, Google posted a 22 percent sequential paid click growth improvement from third to fourth quarter last year. The 9 percent move this year could suggest a marked slowdown in consumer interest ahead of holiday shopping; and does not bode well for those who might have thought Google was more insulated against an economic slowdown than others.

The company also hired another 900 workers on the quarter, bringing full-time employment to 16,805 employees, even as the company said tonight that "we expect to make significant capital expenditures."

Heavy spending, big-time hiring, and unable to meet Street expectations on the top and bottom line is a big problem especially for shorter term investors hoping for a shot of optimism from the company.

Questions?  Comments? 

© 2009 CNBC, Inc. All Rights Reserved

Tools:
PrintEmailAdd This share icon
Next Post


Current DateTime: 02:03:05 06 Jul 2009
LinksList Documentid: 29778428

Current DateTime: 11:26:00 06 Jul 2009
LinksList Documentid: 29779196

Current DateTime: 12:11:29 06 Jul 2009
LinksList Documentid: 29779199

Current DateTime: 01:04:51 06 Jul 2009
LinksList Documentid: 29779198
CNBCCNBC
About CNBC  |  Site Map  |  Privacy Policy  |  Terms of Service  |  Video Reprints  |  Advertise  |  Help  |  Contact
Partners: AOL Money  |  BloggingStocks.com
CNBC is a Division of NBC Universal
  Data is a real-time snapshot *Data is delayed at least 15 minutes
Global Business and Financial News, Stock Quotes, and Market Data and Analysis

© 2009 CNBC, Inc.  All Rights Reserved.
Thomson ReutersThomson Reuters