Google stock down 9%!!!!
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Google just released its Q3 earnings and the stock price is down 9%.
Find an article online talking about these results, and let us know what you think...
Does it matter?
Is Google in trouble?
Why is the stock down so much according to analysts? Is that good or bad in your opinion?
Comments & Feedback
http://digitaljournal.com/article/335108
According to this shocking news, some Analysts think one of the problem is because of poor performance of The Motorola,"The Motorola unit suffered an operating loss on a GAAP basis of $527
million, a break down shows a loss of $505 million for the mobile
segment and $22 million for the home products segment." other reason is about the Ddecline in advertising charges, charged by the click costs down 15%, while ad clicks rose 33%, the total revenue still declined.
http://news.investors.com/technology/101912-630017-goog-falls-as-earnings-disappoint.htm
This article briefly discussed the drop in Google's stock. Yes it dropped a lot, but I don’t think Google is in trouble. Analysts in this article were blaming the drop on the recent purchase of Motorola Mobility. Google purchased Motorola in May and in the third quarter; Motorola's results were weaker than expected.
"Overall, however, the key trends remain in place and all of mobile; Android, YouTube and search remain on firm footing" said Colin Sebastian, a Baird Equity Research Analyst. So I believe Google will be ok, every company has their ups and downs, and this is Google’s first down!
http://digitaljournal.com/article/335108
This is the article I found that reported this issue and some opinions. It appears that the price down is mainly due to the operating loss of Motorola. The New York Times' analysis which attribute the loss to Motorola's failure in generating good revenue from ads, attracts me. As far as I know, Motorala used to be the bell leader in cell phone. However, lacking innovation and strong understanding on consumers needs shift, it had to follow the smart phone trend at this time. I think there would be another opportunity for Motorola, which is mixing vintage with the smart phone technology.
To thoose followig the Google stock, this is a shock and quite demoralizing depending on how much stock you own. I know my Dad owns a bunch and after hearing from him, he seems to think it wont matter and Google will bounce back like they always do.
I dont think they are in trouble, they will bounce back.
Very strange that Google's stock price is down 9%. I highly doubt that the commerical success of the company on any one day has much to do with its future prospects, given that it's a juggernaut company that is clearly dominant in several areas.
Sorry to hear the bad news, but I don't think it worths deep worries. As I know, the stake price drop is due to 1) Motorola's bad days are not ended yet, and 2) the profit margin in advertising business is shrinking. For the first fact, it is just not realistic to expect a falling company to jump up immediately right after being acquired. So, it is not really a negative news. The problem is in the second issue, the droping profit margin in advertising business. In my opinion, it is the nature for an advertising method to be expensive when it is firstly introduced, and to become cheaper when the halo is gone, and the method itself becomes mature.
Therefore, Yes, the profitability of Google is decreased, in terms of the advertising business, but it may only be temporary. Think of Google Glass, the auto-driving car project, Google Wallet, and the thrilling artifical brain built in Google X (I know it has just learnt the concept of "cat" by itself days ago), etc. Any of these projects can be promising profit sources for Google. So, I still put my stakes in Google.
http://news.investors.com/technology/101912-630017-goog-falls-as-earning...
I really don't think it matters that much. Stocks change all the time, essentially it's the faith you put into a company and their past stock success that make you buy into a share. So I think it's safe to say Google is still a solid choice based on these points. Google may be in trouble at the moment becuase of an entially media shock, but I don't predict it to last long. The stock is down because of Googles buy into Motorola according to analysts. I think thats bad in my opinion because it makes Google look unreliable.
I found this article that recently said that the Google stock drop was because of a computer glitch. I honestly do not think that Google is in trouble, I don't think that the stock drop is anything to worry about. Any time a stock goes down right after a company releases their earnings if it is not what shareholders want the stock always goes down. The only time a company is truly in trouble is if their stock continuously goes down, with Google, this is not the case however.
http://www.forbes.com/sites/roberthof/2012/10/18/oops-google-trading-hal...
According to analysts the stock has declined for a variety of reasons, including: increase in costs, significant loss from Motorala, and ad revenue did not exceed any records. However, I do not think this matters so much and I do not think Google is in trouble. Fist of all, according to the article, the 9% decrease in stocks is very small, at least in Google's core business. Also, Google is depended on by millions and billions of people each and everyday, without it I think I can speak for the majority, we would be lost!
The article I found about the recent Google news said that the information was accidentally leaked before the market closed. I believe the stock being dropped is a case of speculation based on incorrect information and dosent hold for an argument saying Google should be worried. You can see why the market would be down due to this information but now they know it was a mistake I dont see Google dropping anymore.
http://digitaljournal.com/article/335108
I read the article from CNN Money and I really enjoyed reading the section regarding the advertising revenue that Google shares with its partners, a figure known as traffic ascquisition costs, and how Wall Street analysts exclude it from their forcasts. It seems like any complex algorithm and smart analyst would include all known sources of revenue and influences on the stock price in its prediction. Probably the most comical thing to come out of the accidental reports from Google was the "PENDING LARRY QUOTE". Always interesting to see a company as large as Google mess up on something so important to the future of its company.
After reading an article on the third quarter stock price dropping 9%, I don't really think that Google is in too much trouble. They still had great sales with sales increasing 45% over the year. They missed their mark by only a little bit (Q3 sales were $11.3 when expected to be $11.8) so it's not like it was that drastic of a downfall. Overall I think that Google's stock will eventually increase once again and that people shouldn't freak out and make it a big deal. In the long run it's just a little bump in the road.
Google had a good third quarter. However, Wall Street felt they should have done even better. Google is down slightly compared to past earnings due to the fact they spent a great deal acquiring new companies. Also, they did not have as many add sales. There is no question Google is still in the lead by a great distance. There is nothing to worry about.
http://www.engadget.com/2012/10/18/google-q3-2012-earnings-report/
The world wide web is still believe or not is in its developing stage and Google is still a baby as far as companies go. Google has done a lot of growing since first being launched but there is still plenty of room for more growth in this company. It is the world's search engine leader and is not going to disappear for a mis recorded fall in their stock. Google has been down since those reports but analysts don't think it is much to worry about because the creative minds behind the Google team will have everything under control. The analysts believe this sudden drop was due to the fact that a huge compenant to Google actually making money is users paying for the ppc advertisiments. Overall this article will explain it better than I can; http://www.washingtonpost.com/business/economy/google-stock-falls-after-earnings-disappoint/2012/10/18/351aa642-195c-11e2-aa6f-3b636fecb829_story.html
According to this article, the release of Google's Q3 earnings were premature and incorrect. The data was released without Google's authorization. Google actually had a strong quarter and is continuing to be a successful search engine company. I think that Google will remain the dominate company in the industry, while also thriving in other sectors of business.
http://allthingsd.com/20121018/google-q3-earnings-liveblog-and-now-the-r...
http://www.eetimes.com/electronics-blogs/other/4399071/Another-Glitch--A...
The article above talks about the recent Google stock crash. I feel that drops in stock are just part of the continuous ups and downs up Wall Street. I beleive the drop was due to information being leaked, but that it is just a minor setback. Google is a solid company with so many users that this drop is not something they can't recover from. The leaked information stated that Google lost $22 billion. The fact that the information was due to a computer issue and not the actual company, they should be able to turn this around and re-instil confidence in its share-holders.
At the end of last week Google had a few alarming events happen. Firstly, they misreported and reported their results to Wall Street four hours before they planned to announce their third quarter figures. Although it was a obstacle, that was the least of the worries. The biggest focus was on what the numbers reported and how there was a decline in advertisers rate per click. These results showed that "rate fell 15 percent compared with the same period a year earlier and 3 percent from the second quarter." With the early reporting and the decrease in revenue per click, this is what caused te stock to go down 9%. Google is not in trouble overall. If you were to look at any company on one given day (especially on the release of unfavorable quarterly results) there is fluxuation. The reason Google is not in trouble, is becuase they know what their issue is. Many of the issues stem from the use of mobile devices. With smaller screens, there is less room for advertising. Also when using mobile devices, users are shopping online but purchasing in person. With using this knowledge, Google can find a new tactic to tackle this problem!
Google is one of the biggest companies in America. They in my opinion are not going anywhere. Google is rated at being the second best internship programs right behind Microsoft. With such a large following and strong believe in advertsiment I think they have an established well enough platform to stay around for generations.
http://www.forbes.com/sites/darcytravlos/2012/10/20/worried-about-google...
Unfortunatly for Google they released their third quarter earnings early and as a result investors panicked and sold stock. Although this might seem like a problem at the end of the day its Google. They have plenty of security and will be able to prove to other investors that their stock is worth buying again. They will soon realize that Googles sales have risen 45% over the course of the year and that is defiantly something to look forward to.
http://www.techinvestornews.com/Google/Latest-Google-News/google-q3-earn...
I think Q3 was a minor setback and Google will do better in the near future. It's just a matter of time before the minds at Google come up with another G-mail or Chrome that blows all of our minds and reassures investors.
I do not think such a large company like google will in trouble, even the stock dropped 9%. Google announced its third-quarter profit total was $2.18 billion, lower than $2.73 billion last year. And this problem is causing by the revenue lost from Motorola. However, this fact still needs to be worried about, and fixed that this will not happen again.
When Google accidentally released their 3rd quarter earnings early, their stock dropped by 9%. I doubt Google is worried. Yes, it is a lot of money to most comanies but for a company of Google, it matter much less. I don't think Google is in trouble. Google cut 4,000 Motorola employees and 1,000 Google employees which shows some worry, but owning stock isnt for the those that look at short term numbers. I don't think its a good reason to sell all of our Google stock.
Google's stock dropped by 9% in the third quarter, and its per-click advertising by 15%, which bodes ill for its online advertising revenue. The stock, though, seems to have responded negatively to underperformance by the Motorola arm of the Google empire, which stands to be streamlined imminently, according to The Wall Street Journal. It is important to mention that consumer trends may have contributed to the drop in stocks, as well... and time will tell just how much. As for analysts, they don't sound too worried. I don't think the execs should be worried yet... just vigilant.
According to this article, the reason the stock went down was because a publisher prematurely released a report to the Securities and Exchange Commission. This content was available for at least 4 hours before the market was closed. It was being said that because of this "investors were able to dump their stock and send the shares into a nosedive."
Analysts are saying that the operating losses of Motorola are due to the fact that Motorola is earning less on mobile ads. They are also saying these losses aren't just for Google. Facebook, Microsoft and Apple are also experiencing similar changes, so this does not seem to be too big of a deal for Google. I think if they can reconstruct Motorola, they won't have anything to worry about.
Google stock went down 9% with their third quarter earning release. Revenue was 45% higher than the same period last year with $14.1 billion. However, net income declined 20 percent. A big reason for this was Motorola Mobility and weak foreign exchange rate. I believe it is too soon to panic about Google. Google is a large company that has been growing very fast and Motorola Mobility is not the only business they have. They still have their main business, which is going strong. However, if Google continues to suffer in this industry while others are doing well, they might have to worry.
In an article at investors.com it seemed that the downfall in googles stock was exaggerated by Motorola, a company recently acquired by google. Aside from Motorola and Android, googles other video and search engine components seem to be doing fine. I would say that this is bad for google because it shows that they made a poor choice in purchasing this additional company.
http://www.forbes.com/sites/darcytravlos/2012/10/20/worried-about-google...
We can't forget that Google's stock had risen 37% in the last four months. This article hypothesizes that some people who were looking for a quick gain dropped out and cut their losses. Forbes says that Google is only getting stronger in the long term. Advertising is Google's bread and butter and clicks were down greatly, which Forbes blames partially on moblile consumption where less advertising is available. The format for mobile advertising has yet to be figured out and is expected to grow four-fold in the next four years.
While I do think that the stock drop is significant, Forbes makes a strong point that the long term is more important and we must remember that economic cycles affect all aspects of advertising and business.
Found this article that talks about how Google's earnings actually went down 8 rather than 9% once trading resumed, but even still; a loss is a loss. However, as many others in the class have mentioned, it's Google. I don't see any near signs of trouble for the company that has become a legend for success. Google Chief Executer, Larry Page addressed a quote stating, "We had a strong quarter. Revenue was up 45% year-on-year, and, at just fourteen years old, we cleared our first $14bn revenue quarter", leading us to believe that the company isn't headed down a dangerous path. According to analysts, the problem in the stock is due to weak revenue from Mototola. I have a suspicion that Apple has taken the lead in this area because of the iPhone, especially now, with the iPhone5.
My article from Investor's Business Daily definitely viewed this issue as worth worrying about. They note that it is the first time in four years that Google's earnings have fallen. They describe this drop as disappointing, and attribute a lot of it to their purchase of Motorola Mobility. Overall, though, as the article states (and how I feel) is that Google is still doing solidly on other fronts--Youtube, Android, etc.--and therefore should pick up again.
I found this article from Forbes and thought it had a lot of good points to make about Google's current situation. Yes, Google's recent earnings report was dissapointing, but Google still dominates internet search advertising with 79% of the market share and a 51% share in mobile advertising. The issues the Google faces spring from the need for growth in advertising via mobile devices, and everyone else is working through the same issue. Because advertising cannot work the same way on mobile devices that it has on other forms of media, ther is an adjustment process ans re-evaluation that must be undertaken by all companies and Google's recent drop in stock prices is reflective of that. I do not think that this is anything to panic about. Sure, a 9% drop may seem like a lot, but if you take a step back and look at the bigger picture, Google continues to grow and remains a strong, groundbreaking company.
Google's stocks have been dropping, but In my opion it is nothing to worry about.
As the internet evolves and changes, Google needs to change the way it makes its advertising money. With the rise of social media, traditional types of internet advertising is not as effective. I have have no worries that Google will be able to keep up with this trend. It may take time for the company to figure out what to do, but Google is a very innovative and creative company that is good at staying with the ever changing internet.
I couldn't help but notice that by searching, "google stock down 9%" the newmedia class site was the fifth listing. Now that's some good SEO.
Now to the real matter. No I personally don't think Google is in trouble. In business nobody wants their stocks going down but with 48 billion dollars in the bank and a growing giant I say the best is yet to come. If you read the Nydailynews then of course the initial reaction would be to go into panic mode. They painted a rather grim picture in their rather short excerpt on Google. Forbes, CNNMoney and Barrons blog did a fair job of pointing out the real factors surrounding Google's stock fall.
Does it matter?
Sure it matters, losing money always matters. In business when you acquire a company that isn't doing well you acquire a bit of a loss so that affected Google's stock after they acquired Motorola. Another thing is that one must understand that Wall Street operates a lot on speculation (just think about gas prices). The fact that Google didn'y live up tp the expectations of Wall Street as pointed out in CNN Money, doesn't mean that the company isn't doing well. If you should visit Barrons you will see a quote by CEO Larry Page, saying it was a strong quarter and the first 14 billion quarter. Does that sound like a company in trouble?
What I am more concerned about is not so much that Google stock went down as they report record profit but that Yahoo is trying to be the comeback kid reporting solid earnings with their new CEO Marissa Mayer.
When Google accidentally released their 3rd quarter earnings early, their stock "plumetted". I really don't think that Google missing their predicted by less than a billion dollars is that big a deal in the grand scheme of things. Yes, it is a lot of money in actuality but for a company of Google, it doesn't matter that much. I don't think Google is in trouble. Our world is on a 24 hour cycle, meaning things change every day. Yes this was a scare for people on Wall Street but its like viral videos on YouTube, they come and they go. A year from now, I don't think many people will remember that day. Some analysts were saying that Motorola contributed to the short earnings this quarter. Google had to cut ~4,000 Motorola employees and ~1,000 Google employees which shows some worry, but I don't think its a good reason to sell all of our Google stock.
I read an article about Google stock decreasing on TheWashingtonPost.com:
http://www.washingtonpost.com/business/economy/google-stock-falls-after-...
I thought it was interesting how TheWashingtonPost reported that Google made a mistake of releasing its Q3 earnings too soon, which was one of the causes of the stock price falling. A combination of that as well as weak numbers, the stock price fell 9%. I think this might have been bad timing on Google's part, especially with the holiday season approaching.
II don't know if this necessarily matters, because advertisers are still going to pay for ad space, whether that be for desktop computers or mobile devices. Regardless of the falling stock prices, I don't think Google will be in much trouble. They are still one of the biggest search engines used in the world, and people rely on it everyday!
The article I used for this comment came from the NPR website (http://www.npr.org/blogs/thetwo-way/2012/10/18/163164244/googles-stock-drops-after-premature-release-pendinglarry-goes-viral). The article, "Google's Stock Drops After Premature Release; 'PendingLarry' Goes Viral" explains that, due to human error, Google's third quarter earnings report was released hours before it was supposed to -- and hours before the stock market closed for the day. Additionally, the report was incomplete, leaving an all caps "PENDING LARRY QUOTE" in the document.
Do I think this one incident will damage Google beyond repair? No. However, it is an indication and an example of how a small mistake can mean millions for a company. While we live in a 24-hour news cycle era, stories come and go very fast, but the reactions to those stories also come very quickly.
I will say, however, that, just as MySpace had its time in the sun, Google may become outdated if it doesn't continue to innovate itself and its company's objectives. If I worked for Google, I would use this incident as a teaching moment to realize that, not even Google is untouchable.
While the early release may have caused stock price to drop a quick 9%, I don't see the need for panic quite yet in Google's case. In a statement found at the beginning of this Forbes article CEO Larry Page touches on other improvements in the 3rd quarter that should ease the worries. Some analysts suggest the acquisition of Motorola may have played a factor in the reports, but the growth in revenue, paid clicks, and subsequent decrease in cost per click are all positives that show Google is moving in the right direction. We've seen Google grow to an industry leader in such a short period that this minor setback should not deter from their strong brand.
http://www.washingtonpost.com/business/economy/google-stock-falls-after-...
After reading this article, I don’t think Google is in any danger due to the 9% drop in stock last week. It is such a powerful and large company that it will bounce back in no time. Analysts said that one of the causes of the decrease was due to Motorola Mobile, a company Google bought last May, that is experiencing trouble. Another factor that was said to cause the drop was that more web time is being spent on mobile devices, where advertising rates aren’t as high than from a computer or laptop. Google is strong enough to handle these issues and I think that it is something that they can overcome.
Although Google's stocks may have dropped by 9%, I don't think it will negatively impact the company. Rather, it will force Google to revaluate its current Motorola business model. This segment of the business appears to have underperformed, which has already been recognized by executives at Google as 20% of Motorola’s staff will be laid off soon. The company only slightly underperformed in its core business. However, executives at Google should feel a certain level of unease as online advertising competition heats up with companies like Amazon and Expedia. New consumer trends are partially to blame for this drop as well, which is probably being reflected in other online advertisers’ portfolios. Consumers are shifting to a mobile platform, and per-click advertising dropped by 15%.
http://www.sfgate.com/business/article/Google-stock-falls-amid-botched-report-3961588.php
Google stock fell almost 9% due to a botched earnings release. Many people thought Google invested too heavily on mobile advertising because advertisers pay less for searches on mobile devices. People are less likely to pay on the go from their personal phone. Google is stepping up its efforts to sustain a competitive advantage compared to a new force, BING. Bing recently released their commercial knocking Googles search engine. http://www.youtube.com/user/bing. Google is not in trouble and is making the right moves to gain a larger market share.
No Google is not in trouble. This number does not matter in the grand scheme of Google's existence. According to analysts although google modestly missed its expectations, the investment in Motorola was the main contribution to why the company's stock fell so much. According to the article Motorola is a "dying elephant," and I would have to agree. Just from experience it is no suprise that the cell phone giants of the world are AT&T vs. Verizon. Slowly but surely all the other phone companies are being bought out by these two companies. I think in time Motorola will fall victim to the same fate as many other cell phone companies and get bought out due to its low stock values.
I do believe that this analyst had a good opinion. Although google did fall short of expectations, they were pretty minimal misses in prediction. I feel as though the declining health of the Motorola company is mostly to blame for the drop in stock. Google is not in trouble in the least bit. It is a company that is here to stay.
When numbers are released each quarter the stock will generally drop if the company doesnt achieve its goals. A drop in stock by 9% is a big problem for the people invested in those stocks, but with Google, 9% isnt much. Eventually it will sky rocket back to where it belongs and your money will be safe. Google is way too big to fail and go bankrupt, so a stock fall of 9% isnt something that will put Google in any trouble.
The stock price is a bad thing for people already invested in Google and that endured the loss with the price drop, but it is a gold mine for someone that is looking to invest. Eventually that -9% will go back up 9% and people that buy the stock when it was down can make a nice sum of money if they invest.
Google has such a high market share that it doesn't need to worry about the stock going down by 9%. The main reason that it went down in the first place is due to the Presidential elections. People who are investing are playing it safe and waiting for who will be the next President before making any big decisions. The market will depend on who wins, so for now, Google will be fine.
Google’s analysis of earning was off by 9% and it accidently was released early. They blame the Financial Printing company RR Donnelley for filing the document to the SEC without authorization. This should not be a huge deal for Google. Their stock was still up 45% for the year. This should not be a huge issue for Google because the quarter was still strong.
There could be a couple reasons for Google’s stock being down. Google took on the mobile company Motorola recently, which generated a loss. Also, the pay per click advertising partners fell 15% over the past year. This is not a bad thing. Google could be in a transitional phase with adding to their company in which they need to figure out.
Google will never have to worry about losing a lot of money because the company is too large to fail. Also one of the main reasons why the stock price could go down is because people are nervous for the election coming up. This is why people arn't selling or buying things right now and could be a main reason why this is happening. It is a true statement in my opinion because people are not selling or buying cars right now and stock is the same thing. Therefore, this is not bad in my opinion, it will bump up after the first of the year.
In my opinion, Google is just fine and forever will be. They are such a large, successful, powerful company that even a 9% drop won't really do much damage to their company. According to a few different articles I read, the 9% drop was due to mainly the purchase of Motorola Mobility (also due to too high of expectations for website advertising). While this may seem like a hassle now, things will be fixed and altered so this doesnt happen again.
I think it is important to note Google and how they are doing in the stockmarket...But i don't think this wil cause any damage to the company. According to this article from newschief.com about Google Stock, Google also had a record high earlier this year in the stockmarket. The stockmarket fluxuates so much it is impossible to base the fate of a company off one rating. It is important to note though, because if it continues to fall for weeks at a time, that is when consumers (especially those with Google stock) to make some important decisions on where they want their money invested.
Google Stock Falls After Q3 Earnings Disappoint- http://news.investors.com/technology/101912-630017-goog-falls-as-earnings-disappoint.htm
I've read this article to understand what caused stock fall for Google. The main reason for large decrease in the stock was the disappointment in Q3 revenue(or earning) for Google. Two main reasons for this poor earning Google showed in Q3 are didn't meet the expectation in website advertisement sales profit, and buying the Motorola Mobility in May which caused them some money into it. I read some other articles to figure out whether Google is in trouble or not. After reading some news about IT and Computer Technology related companies' stock result, I do not think Google is in trouble. Basically, the most of the technology related companies such as HP, Intel, MS, and others' stocks were down which effected by the economic depression. Google also got affected by it showing by the revenue of the advertising sales. People also mention about Google made mistake buy Motorola Mobility but I think this is right investment for Google for strengthen their Android Business. Buying Motorola caused them poor earning for Q3 but this will be make up in the nearest future with Android Business and also increase in advertisement sales revenue within economic recovery.
Google's stock dropping is notable, but nothing to worry about. According to the New York Daily News, the stock wouldn't have dropped as fast if the Q3 earnings weren't released three hours early by a financial printer. The anticipated quarterly results were assessed early giving stockholders time to react to the news, which revealed that Google was $1.62 short per share and fell short of their predicted revenue as well. Google's stock dropping was inevitable, especially since their "core business itself is slowing down," referring to Google's advertising that now costs 15% less per-click than it did last year. Their dominance in a technological industry that's changing exponentially can only reach a certain peak. Or can it? CNN Money reports that CEO, Larry Page, still deems the quarter "strong." Page was referencing the fact that Google recently obtained the mobile company Motorola, causing them additional expenses. Expenses that are necessary for, "creating a beautifully simple, intuitive Google experience across all devices." Google has nothing to worry about because the investment they are making in Motorola's devices should be more than well worth it.
The fact that google's stocks are down a little in the short term is nothing to worry about. Doing a quick google search it is obvious that the long term trend of company stock is significantly increasing. Google is not the type of company where investors are looking to make short term gains. Investors are looking to make long term investments in google especially since the internet is so young and google has so much potential.