There is something very wrong when a company's net income increases 28% in the quarter and revenues go up 58% year to year and the babies in Wall Street play automatons and push the stock down as much as 7% immediately. It is important to remember that not very bright people are pushing markets and investors run in herds. Wouldn't it be nice if some people gave companies credit for not meeting unrealistic "expectations" -- especially when you look past the numbers? People are asking -- on TV- "is it over for Google?" How ridiculous!
It's not only Google. People without a lot of information (especially when companies like Google do not by choice provide guidance) make market moving decisions. And what is even worse, everyone follows those who shout the most, whether they know anything or not.
Google seems to be building its infrastructure for the future, not trying to meet silly expectations of growth. They are growing just fine. But, they are also planning ahead. Just watch them move incrementally -- using their enormous position on the internet -- into such new and experimental areas as health and energy. They can't do that well without hiring. For goodness sakes, give them a break. Give them credit.
All this just gives people a close look at volatility and fear in the market. These are not times driven by reason, but by fear and herd behavior. Investors watch out!
Related Articles:
eBay and Google Good; IAC, Amazon, Yahoo Bad by RobMinton - Jun 25, 2007
Google vs Michael Moore by Mass Market Tech - Jul 01, 2007
Slipstream Project by Sol Nasisi - Jul 09, 2007
Fear and Panic. Now is NOT the Time to Sell by andys2i - Nov 20, 2008
Herd Behavior in High Tech Markets by DanS - Aug 22, 2007
Not Your Father's Volatility by Marc Freedman - Sep 10, 2007
Surprise! Oil prices are rising; Housing stock is in a slump by H Greenleaf - Oct 24, 2007.


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