Google's 2Q Profit Disappoints Investors

[NeeJam]

Basically:

Propelled by the online advertising boom, Google said Thursday that revenue surged to $3.87 billion, up 58 percent from the same time last year -- a gain that was slightly above analyst estimates.

But Google's profit margins narrowed as management ramped up spending to hire additional employees and buy more content for its Web sites. That left Google with a 28 percent increase in its second-quarter earnings, by far its slowest growth since becoming a public company in August 2004.

Investors expressed their dismay in Thursday's extended trading, causing Google shares to plunge by $39.06, or 7.1 percent, after ending the regular session at $548.59. If it carries over into Friday's trading, the harsh reaction threatens to wipe out about $12 billion in shareholder wealth.

Source:

http://biz.yahoo.com/ap/070720/earns_google.html?.v=4

[jasaunders]

The stock dropped temporarily because it didn't meet analyst estimates. The truth is, Google has done so well in the past that the analysts estimates are superficial. The fact that their EPS was $3.59 adjusted for compensation shows that this dip won't last long, Google had a very strong quarter.

[usakos]

what goes up, must come down, and Google has just reached maturity, so it's now going to do a concave down...