Google Gives the Finger to the Street

Google's earnings miss today may be bad news to short-term traders but it bodes well for the company's long-term prospects. The company is investing in future growth and ignoring the consequences of short-term earnings misses. It's refreshing to see a company do it.

Google reported its earnings today and they showed that Google is being run for the long-term and not just to please the heads on the Street.  The company missed its EPS numbers by three cents - 3.56 versus estimates of 3.59.

This was due primarily to heavier spending in Operating Expense and Marketing. 

The company continues to grow rapidly.  Its revenue grew significantly to 2.72 billion which easily beat the Street's projections. The growth in revenue is key.  It shows that Google continues to expand into other markets and overseas.  It's easy to cut expenses to meet the Street's numbers but Google has clearly decided to take the hit from the market instead of sacrificing its growth opportunities.  That seems smart to me.

In the short-term Google's stock may suffer but the company is growing quickly and long-term I think Google's stock will continue to appreciate as the company grows.

Sol Nasisi
Sol Nasisi: Sol Nasisi is the co-founder and a past president of BestCashCow, an online resource for comprehensive bank rate information. In this capacity, he closely followed rate trends for all savings-related and loan products and the impact of rate fluctuations on the economy. He specifically focused on how rates impact consumers' ability to borrow and save. He also has authored a wee

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Comments

  • Anonymous

    July 20, 2007

    Agreed. Google is a player and a 3 cent miss has no long term impact.

  • Anonymous

    July 20, 2007

    Yeah, I was on the Yahoo message board and all of the people there were whining about it and saying it was the end of the world. Some of them must have bought calls because everyone else will be okay.

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