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Below-Expected Earnings For Google Posted Early, Trading Halted
An anonymous reader writes with this snippet from the BBC: "Trading in Google shares has been suspended after the internet giant released its third-quarter results early by mistake. Google blames financial printing firm RR Donnelley for filing an early draft of the results, which had been expected after the closing bell. Shares in Google were down 9% when trading in the stock was suspended. Shares had fallen as much as 10.5% at one stage. In a statement, Google said: 'Earlier this morning RR Donnelley, the financial printer, informed us that they had filed our draft 8K earnings statement without authorisation... We have ceased trading on Nasdaq while we work to finalise the document. Once it's finalised we will release our earnings, resume trading on Nasdaq and hold our earnings call as normal at 1:30 PST.'"
What I'd do, is wait for all the panic selling, pick up some Nov or Dec calls, and when the panic ends, folks will probably buy back in and push the price up a little. Or you could just go long.
Panic selling always overshoots down past where the price will eventually settle.
If their earnings report has already been leaked and the results arent good doesnt that mean shares will still fall in price? If the new report has drastically different results wouldnt you suspect Google is simply flufffing up the results to save face?
Captialisation? Punctuation?
W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
Oh dear
Income this quarter is lower than the same quarter last year but overall revenues are up 45% from the same time last year. So that means that its income is less in proportion to how big it is, 19% of revenues last quarter against 37% last year. Google as a business is getting bigger but its profits are dwindling. Bigger but not better
Moto is loosing money (the rate does seem to have slowed) on top of the 12 Bn purchase price
Why in earth Google is releasing the new Nexus phone made by any one else other than Moto doesn't make any sense to me at all, apart from google not wishing to piss off other OEMs who aren't raking it either.
Othe contributing factors I'd imagine are people using apps instead of browsers, so there's less opportunity for google to place ads directly and ad rates aren't as lucrative a they once were.
As for the timing. Today or tomorrow? Wouldn't the stock have taken a dive anyway? Just off the top of my head thoughts
Watch those corners
This seems really silly to halt trading. If people are dumping their stock due to speculation or accidental reports, let them do it! This just means that others can buy the stock while it's down and should the actual report come in that and everything be ok, well those early speculators just lost out.
It just seems like by having trades be halted if things get too crazy or even backing out trades if they were due to HFT bugs, you're removing all the risk and just enabling dumber and bolder investment strategies.
in for 100 shares at $694.38. It'll be over $700 by COB tomorrow.
I'm pretty sure you mean 1:30 PDT, not 1:30 PST.
My other sig is extremely clever...
A pet peeve of mine (and one of my biggest gripes with Google News) is promoting news sources that are nationally or geographically far removed from the event in question. In this case, I noticed the British spelling of "finalise", which directed my attention to the fact that the linked article is from the BBC. So then I assumed this was in some way related to the London Stock Exchange, or it was the UK division of Google that prematurely released the figures. However that is not the case as this was indeed suspended on NASDAQ and involved the parent Google company.
Better known as 318230.
Is the BBC anglifying the spelling of a U.S. company's report, or are the people at Google huge anglophiles?
No, it's just that Americans don't speak proper English so some kind hearted soul took pity on Google and corrected their spelling.
Only to idiots, are orders laws.
-- Henning von Tresckow
Just in time for the 25th anniversary of Black Monday crash, where the Dow lost 22% in one day.
"I bless every day that I continue to live, for every day is pure profit."
perhaps they shouldn't be allowed to trade.
Actually, authorisation with an s IS English. Authorization is American.
LOL- Looks like Google should consider (WF) Windows Workflow Foundation, or SharePoint with an Approval workflow ...
bæ8Ã0sÃOE?5r©oÂÃ?âz:ÃÃAÃ?ÃOEÂ6fXÃ?]Â
The Z/S is an American/British English thing.
Some analyst somewhere just got canned. Hard core canned to like "You don't even get to keep the stuff on your desk GTFO"... like thrown from a window canned.
Ain't capitalism grand?
Don't you mean "Ain't stock markets grand?"?
There is no requirement for capitalism to make use of stock markets.
Don't know something? Look it up. Still don't know? Then ask.
I don't know what a 'short' is by my dad works for RR Donnelley and he says we're going to be RICH!
You have some other way of generating capital on a grand scale? Love 'em or hate 'em, if we didn't have stock markets, we would have to invent them.
The world's burning. Moped Jesus spotted on I50. Details at 11.
It's a Cold War that's been going on since US independence.
I'm Australian, so technically i can only "authorise", but due to invasion by US forces through the idiot box, many of my fellow (particularly younger) countrymen (or "country people" for the political correctness trolls) are surrendering to ignorance and defecting.
At the end of the day it probably doesn't really matter anyway due to the impending "New World Order" and all...
you must be american
Always the response of those who think our current way of existing is the only way.
Good-bye
if you are honestly going to buy, then you are joining the idiots, not taking advantage of them (you'll merely be in the next iteration of idiots to be taken advantage of)
As long as they spell it with a zed and not with a zee all is not lost.
How can you declare bankruptcy when you have ZERO debt?
New Economic Perspectives
English? You mean the language they speak in England? The language that spells authorisation with an S, not a Z?
Mobile phones and tablets are sucking the profit out of them. They dont have a vertical supply chain of factories and stores like Apple.
We would need either stock or some sort of bond, but a stock market in it's current form is not at all necessary.
Buy low, sell high, eh? Isn't that capitalism 101? Convenient we can blame a scapegoat!!
char*f="char*f=%c%s%c;main(){printf(f,34,f,34);}";main(){printf(f,34,f,34);}
Sentence fragment.
systemd is Roko's Basilisk.
How's that Zune RT doing fer ya?
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Strange story, that. I've been investing since I was a teen, and did paper trading in grade school from stock tables.
On Black Monday, after having just written an Economics paper for Capilano University on ethical investing, for which I'd researched true and tax book value for corporations, I realized that Apple was selling at such a low rate you couldn't lose if you bought it.
I phoned my grandmother and told her not to panic, and to put $10,000 in Apple stock. She did. Later she gifted part of it to me. I later sold parts of that and bought and sold Microsoft stock from the proceeds, which became the 20 percent downpayment on my first house.
Best stock day ever.
This led me to a later decision to buy 600 shares of Ford on what turned out to be the absolute bottom of the market. Made a killing on that.
From risk, comes opportunity.
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Agreed.
Microsoft's Surface? It will probably sell well; when MS does hardware, they typically do it better than even the established players. Windows 8? Ouch.
Ubuntu with Ads? That's the sound of a death knell for that company. Other linux distros have tried this before, it did not end well. The larger problem is that Ubuntu is lying to itself, essentially a servant with two masters: on one hand, without the OSS community, they're dead in the water, on the other hand, they feel they are owed something for the work they've put in. Until they realize that they want to be paid first, contribute to OSS second, they're in for a world of hurt.
Apple is in its own hell. Their co-founder and primary design engineer / artist is dead, as is his ability to sell people stuff that they may not want nor need. They have someone else in there right now, but it sounds like he isn't flexible enough to wear the black turtleneck and the blue jeans. Simply increasing the resolution of your current devices, or playing with form factors will buy you time, but it can't give the company the vision it needs to sustain itself. Given the way Apple is run, you need someone at top who understands what he / she is looking for, and whether the engineers will be able to deliver before he / she even picks up the phone. They have a capable person for the latter, but not necessarily for the former.
Google has its own issues, namely that it appears to be living in a fantasy world / disconnect with the real world. Google search is just absolutely terrible these days, just horrid, as a search engine. Advertisers want more (they always do) intrusive ads, and Google has yet to convince them why progressing to the next format may be a bad idea (it is). Jelly Bean, however, has been well received, and aside from patent issues with Apple, it is shaping up to be a real operating system. On another note, they haven't put anything else out lately worth mentioning, which coming from a company that gave us GMail & friends, seems a little odd. Additionally, there are some rumors of the NSA getting its fingernails into Google's databases, which is a minor concern for alarm; the image of Google opening up various accounts with confidential information at the snap of a bureaucrat's fingers is not one well received.
As for the shares, we all know that the US economy is desperate for some good news, having jumped the gun a few times over the past several weeks. However, despite the horrible deficits and mounting debt problems, we are reminded that it is an election year, so the market will probably remain, as it has sometimes, near the low end until a candidate emerges victorious; whether it will go up or down, after that victory, is open to some guessing.
Bitcoins are an experimental currency at the moment, with developers still writing the software to accept BitCoin payments. It also lacks circuit-breakers and what are considered traditional theft protections, but if you know what you are doing, it might be worth a look.
Iranian Rials are in an odd position at the moment. You can buy in, but it's hard to buy out. However, if sanctions are eventually lifted, the currency may be worth more than originally purchased.
I am John Hurt.
1 - Earn your own money working for others, without going into debt.
2 - Invest said monies in your business in a sensible fashion
3 - profit
4- goto 2
See how that doesn't involve stocks, investors, angels, debt, fake money, speculative markets? Nothing there but personal responsibility and effort. That's business with honor; that's also a business that can plan further than the next quarter.
I've fallen off your lawn, and I can't get up.
You do realize that the English spoken in the Appalachian Mtns. more closely resembles the English spoken in Great Brittan in the 1600's then the English that is spoken in Great Brittan today.
Thats right, you all sounded like a bunch of flipping hill billies.
Extensive research has been conducted since the 1930s to determine the origin of the Appalachian dialect. One theory is that the dialect is a remnant of Elizabethan (or Shakespearean) English that had been preserved by the region's isolation.[2][3]
http://en.wikipedia.org/wiki/Appalachian_English
Shares in companies predated stock markets. Stock markets are really just a bunch of companies who already have public shares getting together to pool resources to allow easier and centralized trading and selling of shares. You ban stock markets, they will simply be reinvented under some other name.
The world's burning. Moped Jesus spotted on I50. Details at 11.
What if your company produces more than one product? What if you have a company that owns a power plant AND sells Adwords?
The world's burning. Moped Jesus spotted on I50. Details at 11.
What a convincing argument without a single counter-example.
Kickstarter?
But it need not take it's current form. Ban the bad practices and it'll be re-invented in a more reasonable form.
You do realize that the English spoken in the Appalachian Mtns. more closely resembles the English spoken in Great Brittan in the 1600's then the English that is spoken in Great Brittan today.
Thats right, you all sounded like a bunch of flipping hill billies.
Extensive research has been conducted since the 1930s to determine the origin of the Appalachian dialect. One theory is that the dialect is a remnant of Elizabethan (or Shakespearean) English that had been preserved by the region's isolation.[2][3]
http://en.wikipedia.org/wiki/Appalachian_English
Don't even try... I'm a German, I just thought it would be fun to 'take the piss' out of you guys as my friends across the channel call it. It is nice to see that (most) Americans can still take a joke.
Only to idiots, are orders laws.
-- Henning von Tresckow
He was. You're speaking it's bastard son, American.
If you've got capitalism you need to have a way for the people with the capital to decide what to use it for. Any restrictions on how they do that are anti-capitalist.
The actual mechanism doesn't have to be a stock market, but the result is the same: if the people with the capital decide for some reason they don't like you, you're going to have less capital available.
when MS does hardware, they typically do it better than even the established players
Yeah, just look at Xbox.
On second thoughts, don't.
What else ?-//
If you read this
Trading in Google shares was suspended for two-and-a-half hours after the internet giant released its third-quarter results early by mistake.
you would have thought that it was Google who had released its third-quarter result, mistake or not.
But if you read this
Google blamed financial printing firm RR Donnelley for filing an early draft of the results ...
or this, from http://www.guardian.co.uk/technology/2012/oct/18/google-shares-suspend-email-22bn
Company results circulate internally for several days as they are being prepared for public release to strict timetables, normally under strict secrecy. Leaks of the figures are extremely rare, but on this occasion Google tersely blamed financial printers RR Donnelly for filing its draft third quarter results "without authorisation".
you would be getting a much clearer picture of what had transpired.
I don't know why BBC chooses to word its news article in such a misleading manner.
The difference in interpretation might be "minor" but the consequences would be huge, if people only get parts of the main picture.
Muchas Gracias, Señor Edward Snowden !
When determining if someone is a witch, I always carry a duck and a scale with me.
Yeah, because Kickstarter is totally comparable to IPOs that net billions to 10s of billions of dollars. Riiiiiiiiiiiiiight.
The increase in PE ratio due to their reduced earnings are ripe to be augmented by a cool product like the glasses they've been working on.
https://plus.google.com/+projectglass/
I'm so much more excited about those than anything Apple makes and that could really give Google the growth they need.
I bought Nortel and Corel.
There is nothing to prevent trading on a stock from becoming so irrational that it goes outside of the fundamentals floor, crashing below the book value of the company, particularly in a panic. Stocks whose price drops enough to start tripping stop loss orders can easily accelerate right below that for some amount of time, with fun stuff like margin calls joining the party too. Value investing based on fundamentals can work very well. But the idea that it must bound the movement of a stock's price, which are driven by all sorts of other things, is not a riskless one. It assumes you can always wait out irrational market behavior, and that's hard to guarantee.
This is sort of off-topic for Google though, given the company's P/E ratio history. It's still pretty far from being a book value driven investment.
"GOOG" posted a third-quarter profit of $2.18 billion, or $6.53 a share, down from $2.73 billion, or $8.33 a share, a year earlier. Excluding stock-based compensation and other items, profit fell to $9.03 from $9.72 a share. Revenue, excluding traffic acquisition costs, improved to $11.33 billion.
Analysts surveyed by Thomson Reuters expected earnings of $10.65 a share and net revenue of $11.86 billion.
Total costs jumped 71%.
Not good. Profits are down, and costs are way up. Need to look at the 10-Q filing to find out what the "traffic acquisition costs" are. Earnings excluding stuff are a form of spin control. The real number is the GAAP earnings, which will appear on the 10-Q.
The numbers indicate that Google is buying traffic, and it's not helping profits. That's a sign of trouble. It's not yet clear how bad the trouble is.
Looking ahead, at some point, we're going to hit "peak online advertising", where total spend on online advertising stops growing. At that point, everybody whose business model is "ad-supported free" is in competition with everybody else in that model, fighting over a pie of fixed or declining size.
zee
omg you just killed a fairy! omg so did i!
How the hell are you going to use a duck to tell if someone is a witch? I can't see it inflicting anything more than a flesh wound.
=~ s,(.*),<sarcasm>$1</sarcasm>,g if any_point_you_wish();
Yup, it really sucks to have beer that you can drink without having to chill it to a temperature that removes the sensation in your tastebuds...
I am TheRaven on Soylent News
Don't even try... I'm a German, I just thought it would be fun to 'take the piss' out of you guys
You Germanians and your scat porn...
Jesus was all right but his disciples were thick and ordinary. -John Lennon
Your greed is boring.
The Z/S is an American/British English thing.
You say potatoe, I say potato.
To have a right to do a thing is not at all the same as to be right in doing it
Perhaps they'll make themselves feel better by beating each other up at the next roundball meet.
You're the ones who took the children's game of rounders and turned it into baseball, possibly the most tedious sport on the planet, with the obvious exceptions of American "football"(rugby with body armour, you wusses) and basketball (netball).
To have a right to do a thing is not at all the same as to be right in doing it
You have some other way of generating capital on a grand scale? Love 'em or hate 'em, if we didn't have stock markets, we would have to invent them.
Or we could just get rid of capitalism.
To have a right to do a thing is not at all the same as to be right in doing it
We let them get away with because we like the Scrabble scores that come from it. More tea?
If you think someone isn't free to have a different definition of "freedom" you may be a tyrant.
Everytime a stock is suspended because of a sudden event (that, the death of Steve Jobs) is actually a reminder that trading decisions need more than a few nanoseconds to be taken. The timestep on trade order is so fast that when a new important information arrives, the stock is suspended for a few hours. Now tell me : why isn't the timestep of a few hours? Stock trading stops on night and week ends. Why does it need a 1 ns timestamp during weekdays?
The Wise adapts himself to the world. The Fool adapts the world to himself. Therefore, all progress depends on the Fool.
I phoned my grandmother and told her not to panic, and to put $10,000 in Apple stock.
That's a really heartwarming anecdote about how those who start out rich (whose granny has $10,000 in their account just waiting to be spent?) find it easy to get even richer despite economic circumstances.
To have a right to do a thing is not at all the same as to be right in doing it
yeah about that email i sent out my bad, i could never get that gmail recall thing working, did i miss anything!
I'd get some professional investment advice if I were you.
Hint: "put all your eggs in one basket" is unlikely to be the executive summary of their report.
To have a right to do a thing is not at all the same as to be right in doing it
Apparently, Google can't keep it's own financial report private. Could our data be protected... Not that others are any better...
Financial reports that are to be released to the public aren't supposed to be private. If capitalism worked properly it would make no difference whether they were released 3 hours early or not.
To have a right to do a thing is not at all the same as to be right in doing it
Rich? My grandfather was employed in public works in NYC and my grandmother was female at a time when women didn't get paid much.
They saved.
Want to know how to get rich?
1. Steal it. (e.g. Gates, that FB guy, etc)
2. Inherit it (only works if you are of Scottish, Welsh, Russian, or Jewish ancestry, though)
3. Save and invest more than 10 percent of your income your whole life.
Which are you?
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is that like Nortel the wireless stuff and Corel as in CorelDraw?
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You should never be involved in stocks if your time horizon is less than 5 years.
If 3-5 years, buy distressed utility bonds.
If less than 3 years ... well, you're FUBAR nowadays. Pay off your credit cards and car loans.
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You forgot that half of what you make in stocks is almost always dividends.
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i think it sucks because i'm stuck with stinking 1 point 's'
i'm seriously considering defecting just to improve my scrabble score (or nowadays i guess its "words with friends")
Yep. Corel was overhyped and drained post-dot-com, they had good products and their stock was worth almost nothing, so I grabbed some.
The same was true for Nortel. They lost 60% of their value and seemed to be plateauing. They had a strong installbase, and a huge patent portfolio.
I figured, "from risk, comes opportunity"
Corel continued to make good products as their stock fell to pennies, they were purchased by the Canopy group, all the shares were delisted.
Nortel turned out to be lying about their financials, and their debt stretched them too thin into non-competitiveness.
Corel is still in business, there was another IPO, when normal investors could buy, the stock wasn't pennies anymore. No point in throwing good money after bad.
Point is, it's called risk, because you can lose too. The trick seems to be to keep taking chances and learn from your mistakes, but it's no guarantee. There's a good strong random element to success.
I used to do tech IPOs. Used to only drop a couple thousand in each one, and set mental buy/sell limits.
If you spread out risk, taking a flyer on a good bet works out more often than not.
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to set their privacy controls correctly.
If it *really* works out more often than not, it's not "risk"
I'm no ameteur, just pointing out that taking a flyer can go either way. Microsoft, RIM and Nokia might make awesome comebacks, people may kick themselves for not buying them, or maybe they'll shrink into irrelevance. I set stop limits to take profit and use options to cover positions. Manually triggering your set-points is time consuming and error-prone.
A well diversified portfolio will track the market in your areas of interest. A well diversified high-risk portfolio shoudl be more volatile, but show greater gains when stretched out longer over time. People like measuring peak to trough and trough to peak though, which is thoroughly unrealistic.
The past few years in the market have been a crapshoot though. I've mostly been standing back until I see some kind of pattern.
The past few years in the market have been a crapshoot though. I've mostly been standing back until I see some kind of pattern.
Agreed. Your best bet right now is a dividends plus stock strategy. Moved 90 pct into S&P 500 mutual fund at 0.03 pct cost ratio.
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