InsideGoogle

Market Reacts Badly To Google Earnings With A Plunge

The financial markets hated Google’s latest earnings report, sending the stock plummeting over sixty dollars.

As the Associated Press explains, the markets expected Google to report earnings per share of $1.76, an average of the predictions of 31 analysts. Google reported $1.54 a share, and that was before costs were deducted for the startup of the charitable Google Foundation, which further knocked it down to $1.22 a share.

The reaction from Wall Street has been nothing sort of disastrous. Google shares plunged
$61.65 in after hours trading, losing 14.25% and dropping to $371.01.

432.6601 +5.8401 (1.37%)  31 Jan at 4:00PM ET Open:  430.57 High:  439.60 Low:  423.973   Volume:  20,344,707 Avg Vol:  12,594,000 Mkt Cap:  127.87B Nasdaq data delayed by 15 minutes - Disclaimer

In twenty days, Google has fallen over a hundred dollars, sliding from the record high of $475.11 on January 11 to the current $371. GOOG bottomed out as low as $394.74 on the 20th, losing $44 on that day, but it seemed to be in recovery mode ever since, inching higher since, reaching as high as $454, but now I’d wonder if it’ll recover at all. I wouldn’t be surprised if we don’t see a new record high until after the next earnings report.

Sorry for those of you who bought Google as a bargain eleven days ago. It should have been strictly a short-term investment.

January 31st, 2006 Posted by Nathan Weinberg | Stock Market, General | 4 comments