Google’s Profits Fall Short

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Google’s second quarter profits rose 28% but fell short of expectations. The company’s stock fell 8% on the news.

The Mountain View-based company earned $925.1 million, or $2.93 per share, during the three months ended in June. That compared with net income of $721.1 million, or $2.33 per share, at the same time last year.
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Google is already very big and its going to be hard to maintain their early growth rate. Wall Street has too high of an expectation of Google. This could be bad for Google
 
Sounds like another yahoo -- internet boom to internet slump.
Search engine boom, search engine slump
 
They can't keep growing as the investors are expecting them to. Sooner or later, their heavy purchases will catch up with them.
 
OlIv0rIolI said:
Google is already very big and its going to be hard to maintain their early growth rate. Wall Street has too high of an expectation of Google. This could be bad for Google
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ugh.. do any of you guys trade for a living?

the online advertisement industry is worth about $600 billion and growing. Google's revenue's all time high, and they are making plenty of money.

currently googles spending immensely on expansion, from acquisition to hiring an army of new employees to further meet demands and capture more market share. recent expenditures also include further expansion into Asia market, especially focusing chinese market.

Google doenst necessarily care about their quarterly earnings at this point. for all i know, i dont think they dotn care at all about the rest of 2007 earnings.
they're thinking ahead and are spending and spending to poise themselves as true uncontested global leader in marketing, computer peripherals, and soon phones, and even cars - wallstreet whispers.

Google is big, however it can still maintain, if not exponentially, its growth. Wallstreet did not necessarily have high expectation for google as any analysts would admit that Google had fantastic revenues, except they've just spent too much - which can be curbed. Nevertheless it was spent well and much needed for Google to grow. Wallstreet overall had only mild expectation for this 3Q earning season. We have too much issue at hand anyways, from subprime to inflation, rising gasoline now $75/barrel is very likely next week. Caterpiller (CAT) and Google (GOOG) missing expectation just exacerbated today's sell off.

wallstreet is addicted to growth as if its crack, but also cares deeply about quarterly earnings. google only missed because they spent to much.
thus, today's price action, and premarket/aftermarket is justifiable by street's standard as they've failed to deliever.

i've shorted Google yesterday, and glad i did.
in couple weeks google can be considered a bargain, and a pullback like today, and more would be coming next week, are a wonderful thing as you can add more to your ppositon at a high discount.
however soon as i covered, i'm done with growth as they're are many more buys than GOOG at this point as the current ravaging bull races on towards Dow 14,500. :D
 
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