Google/GOOG to report earnings today AFTER the markets close
The Google/GOOG earnings report is an event highly anticipated by many traders, investors, and market watchers.
So much anticipation for a company whose IPO was little more than 6 months ago. The highest official guesstimate (not whisper number) I have seen comes from AmTech Research ("We expect GOOG to report results that beat consensus estimates and NOT provide any financial guidance. Our official estimates call for December quarter net revenue of $580MM, EBITDA of $359MM, and pro forma EPS of $0.75. Consensus is looking for net revenue of $589MM, EBITDA of $363MM, and EPS of $0.77. We believe the upside scenario for GOOG this quarter is net revenue of $611MM, EBITDA of $385MM, and EPS of $0.81.")
At some point, however, the company will fail to meet what will be typically increasing expectations, and that day could be today. (This type of action/reaction is the bane of growth stocks everywhere.) We will know ~3 hours from now.
Nonetheless, the long term opportunity for Google/GOOG investors is extraordinarily grand. Should the shares come under selling pressure tomorrow, or in the coming weeks, you will find me with open arms.
Why? In addition to what I said earlier today, is this comment from the insightful Bill Burnham's blog: http://billburnham.blogs.com/burnhamsbeat/2005/01/the_coming_blog.html
And if instead GOOG shares rise in a manner reminiscent of the explosive rally after the report for Q3 '04 -- well, you have been warned. Of course, as I write this blog entry, GOOG shares are down ~$4. Why this occurs is anyone's guess: The price decline so far today could be the Microsoft/MSFT announcement re gunning for Google in the search space (to consider Google as merely a search company misses altogether what this company becomes), selling in advance of the earnings report, a combination of both, or merely a chart pattern that begs for a decline to build a better base before a more enduring move up in price.
But all this short term price volatility merely helps create opportunities for investors. And I want to own GOOG shares for years. Don't you?
So much anticipation for a company whose IPO was little more than 6 months ago. The highest official guesstimate (not whisper number) I have seen comes from AmTech Research ("We expect GOOG to report results that beat consensus estimates and NOT provide any financial guidance. Our official estimates call for December quarter net revenue of $580MM, EBITDA of $359MM, and pro forma EPS of $0.75. Consensus is looking for net revenue of $589MM, EBITDA of $363MM, and EPS of $0.77. We believe the upside scenario for GOOG this quarter is net revenue of $611MM, EBITDA of $385MM, and EPS of $0.81.")
At some point, however, the company will fail to meet what will be typically increasing expectations, and that day could be today. (This type of action/reaction is the bane of growth stocks everywhere.) We will know ~3 hours from now.
Nonetheless, the long term opportunity for Google/GOOG investors is extraordinarily grand. Should the shares come under selling pressure tomorrow, or in the coming weeks, you will find me with open arms.
Why? In addition to what I said earlier today, is this comment from the insightful Bill Burnham's blog: http://billburnham.blogs.com/burnhamsbeat/2005/01/the_coming_blog.html
And if instead GOOG shares rise in a manner reminiscent of the explosive rally after the report for Q3 '04 -- well, you have been warned. Of course, as I write this blog entry, GOOG shares are down ~$4. Why this occurs is anyone's guess: The price decline so far today could be the Microsoft/MSFT announcement re gunning for Google in the search space (to consider Google as merely a search company misses altogether what this company becomes), selling in advance of the earnings report, a combination of both, or merely a chart pattern that begs for a decline to build a better base before a more enduring move up in price.
But all this short term price volatility merely helps create opportunities for investors. And I want to own GOOG shares for years. Don't you?
posted by David M Gordon | 10:00 AM
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