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Analysts Are Seeking Guidance From Google

Posted by ryuzaki0 on from the analyzing-googs dept.

Carl Bialik from WSJ writes "Following last quarter's disappointing earnings, Google's annual analysts' day this Thursday is shaping up as a test of the company's reluctance to provide financial guidance -- and of investors' tolerance of that tight-lipped approach, the Wall Street Journal reports. 'Now, Google watchers expect analysts to bring tough questions on Thursday and to pressure executives for answers that might give analysts greater confidence in their forecasts,' the WSJ reports. 'There's no reason to believe that Google will yield to any such pressures.' However, 'There is one recent sign that the company aims to be more analyst-friendly. Company representatives earlier this month solicited analysts for input on what investors wanted to hear about on Thursday, according to a person familiar with the matter.'"

7 of 119 comments (clear)

  1. They deserve it by bogaboga · · Score: 4, Insightful

    I have no sorrow for all those so called pundits/analysts and others. All they want is an avenue to be able to speculate after being provided with some data. How come they were not able to predict and prevent the ENRON scandle? Let then leave Google alone, after all, this America.

    1. Re:They deserve it by anthony_dipierro · · Score: 4, Insightful

      Enron lied to analysts, google won't talk to analysts. Both companies show very little respect for teh average stockholder. The only difference is that google's motto is "do no evil," so it isn't unreasonable to expect more from google.

      And more is exactly what Google is giving. What's good for the analysts isn't necessarily what's good for the stockholders. And it's not like Google is the only company which refuses to provide financial guidance. Most likely they got the idea from a company you may have heard of called Berkshire Hathaway - a company whose stock has grown to over $85,000 a share.

  2. So let me get this straight... by Anonymous Coward · · Score: 5, Interesting

    Google blows away analysts' projections for the first three quarters of last year. Those analysts wise up and factor in some fudge, and suddenly their projections for the fourth quarter are much higher. Google fails to beat the inflated projections and is now suffering an investment backlash?

    What gives?

    1. Re:So let me get this straight... by Catbeller · · Score: 4, Insightful

      "What gives?"

      Indeed, and that backlash really smarts, I have to say on a personal note.

      Anyone given any consideration that the downgrading of the stock by the analyst community might be a deliberate act of passive-aggressive punishment? Give us access or we destroy your rep on Wall Street? As I said, passive-aggressive; it's not that they slander the company, it's that they won't buoy it up by the usual flim-flam good press they give to the reputations of companies that toe the line and let the analysts get inside info they can use to make themselves very rich. Very, very rich.

      Google has my respect if they are resisting those thieves. But they are paying a dear price. So am I, ka-ching.

      Analysts want to game a company's activities to produce high short-term profits that will enrich the casino on Wall Street. Google is right. The best way to produce value to your shareholders is to grow a company over the long haul, even if it sacrifices short-term cashouts for the inside traders.

      How many companies would still be in existence if they hadn't squeezed themselves dead to satisfy the expectations of those horse thieves?

  3. If they want their questions answered.... by canning · · Score: 4, Funny

    If they want their questions answered, Google them. It's what i would do.

    --
    I love the smell of Karma in the morning
  4. Re:About time.... by mattjb0010 · · Score: 4, Insightful

    The services may be free but they increase revenues from advertising, what's at issue here is not Google's ability to make revenue or generate growth (they've been doing both fine) but that they need to be more honest and open in the marketplace for the market to do its job.

  5. Fast reactions by rumblin'rabbit · · Score: 4, Insightful
    This practise of giving earnings guidance is a game that has little or no benefit for the long term shareholder. It only benefits analysts with fast reactions and access to after-hours markets. Some of the best companies in the U.S. (many have Warren Buffet on the board of directors) now no longer give guidance and I approve of this.

    The long term investor is quite content to wait till the quarter is actually over before finding out how well the company did.

    Having said that, Google's price is still too high.