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Google misses slightly on fourth quarter earnings and stock dips

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Google’s fourth quarter earnings missed Wall Street expectations today, but only by a slight amount. The stock dipped down 3 percent in after hours trading.

Here are the Q4 numbers:

Revenue minus traffic acquisition costs (TAC):

Analysts expected — $14.61 billion

Google actual — $14.48 billion

Earnings per share (Non-GAAP):

Analysts expected — $7.08

Google actual — $6.88

Cost per click:

On — Decreased 8 percent in Q4

On Google’s network sites — Increased 6 percent in Q4

As The Information’s Amir Efrati pointed out on Twitter, you can see Google’s true opinion of its fourth quarter earnings by comparing its press releases from former earnings reports. This is the first quarter in a year that Google hasn’t heralded its “strong” and “great” “momentum” and “growth.”

During the earnings call, Google’s CFO Patrick Pichette confirmed that the company has halted its Google Glass project. He explained that Google will pause future projects and reset their strategy when they aren’t having the impact hoped for. This is a change in messaging from the company’s earlier line that Glass was just “graduating” to a new stage of development.

Google also discussed its Chromecast stick, saying it has seen 1 billion cast sessions since the company started selling it. Despite the bullshit metric — number of units sold would’ve been a better number — Chromecast is clearly doing better than Glass.

This story has been updated with information from the earnings call.

2 Responses to “Google misses slightly on fourth quarter earnings and stock dips”

  1. Google’s share price can’t fall. Wall Street loves this stock whether it misses or not. Google is Teflon-coated because everyone believes that Android is the answer to everything. What they call The Internet Of Things. Google has dozens of futuristic projects that could hit it big in the future. Forget about now and think ahead for the future. Google is following the same path as Amazon. There isn’t one analyst who’d ever say to sell Google. Most analysts have infinite confidence in that company for reasons beyond my understanding. I just know from the past that it’s one of the few stocks that can completely miss on earnings and still rise, which I find totally amazing.