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Google is off nearly $65 in after hours trading…. Bloomberg’s report had my head spinning, so instead I opted to read The

the search giant put its non-GAAP earnings for the quarter ended Dec. 31 at $1.54 a share. Analysts surveyed by Thomson First Call were looking for $1.76. Net revenue, excluding the money Google shares with advertising partners, was in line with estimates at $1.29 billion.

12 Responses to “G-Oh-Oh-G”

  1. Major buying opportunity when it was down $75. Already re-bounded by $25. The core business is clearly sound and continuing to grow rapidly despite being already ginormous. As Gopi notes, who cares about some poor tax planning?

  2. IMHO Business wise Google is still doing good ,it seems the earnings miss is mainly due to tax issues.

    Google’s effective tax rate in the fourth quarter was nearly 42 percent, well above the roughly 30 percent rate during the second and third quarters.Google would have matched the average analyst estimate if not for this higher tax rate

  3. yup, it is wall street with its overblown expectations etc etc etc. i am surprised that people don’t learn from the past. they price stocks for perfection, and then cry when something goes wrong. oh it is so strange….

  4. Glad they missed the earnings. Their is still strength in the stock as it recovered half of it’s loss. At 4:50PM EST, WSJ reported it was down 19%. Google Inc.’s profit and sales surged in the fourth quarter, but the results disappointed investors, who were expecting another blockbuster quarter from the Web search giant. Shares plunged 19% in volatile after-hours trading At 7:46PM EST, it is down by 11%.

  5. Goog executives may or may not care about the impact that the stock price has. Ultimately they’re down $1-$10MM… out of $100MM – $1B in assets. The employees who’ve joined Goog over the past year may care however as option compression begins to impact their net worth. Prolly not an issue at this point, but something Goog will probably start taking note of.

    This can impact investment in non-revenue generating projects since you can’t have a 4% drop in operating margin as a standard as they did this past quarter.