Linked by Thom Holwerda on Thu 18th Oct 2012 19:19 UTC
Google "Google was scheduled to post third quarter earnings after the bell on Thursday, but unexpectedly they were released around 12:31 PM in New York, revealing a big miss on profit. The company also missed expectations on revenue." I have no idea if the figures are bad, and if so, how bad. I mean, missing analysts' estimates doesn't really say anything useful, does it?
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Who cares about analysts?
by jared_wilkes on Thu 18th Oct 2012 19:54 UTC
jared_wilkes
Member since:
2011-04-25

I would say GAAP net income declining 20% y-o-y (regardless of Moto's contribution to this and whatever any analyst states) is pretty objectively bad. Heck, Moto representing 18% of revenue versus 10% of revenue last quarter is objectively bad.

Worst of all, per-click pricing on ads declined 15%. There's virtually zero chance that ad pricing is ever going to move in any other direction but down from here.

Edited 2012-10-18 19:55 UTC

Reply Score: 4

RE: Who cares about analysts?
by tanzam75 on Fri 19th Oct 2012 00:46 UTC in reply to "Who cares about analysts?"
tanzam75 Member since:
2011-05-19

Worst of all, per-click pricing on ads declined 15%. There's virtually zero chance that ad pricing is ever going to move in any other direction but down from here.


I wouldn't say zero chance. Fluctuations are quite common in business, and Google's current quarter might be better than its last one.

But Google is certainly facing heavy headwinds in mobile. Not because of Android or Motorola -- but because of the effect it's having on ad pricing. Google, after all, generates 97% of its revenues from ads.

Mobile ads are simply worth a lot less than ads shown on desktops and laptops. Just like Internet ads are worth a lot less than newspaper ads. This is the problem with ad-supported business models -- you put yourself at the mercy of many factors that are simply out of your control.

Reply Score: 2

RE[2]: Who cares about analysts?
by Neolander on Fri 19th Oct 2012 08:44 UTC in reply to "RE: Who cares about analysts?"
Neolander Member since:
2010-03-08

Mobile ads are simply worth a lot less than ads shown on desktops and laptops. Just like Internet ads are worth a lot less than newspaper ads. This is the problem with ad-supported business models -- you put yourself at the mercy of many factors that are simply out of your control.

But aside from ads, is there a semi-working business model out there for "free" services like websites, rather than doing something profitable as a side business and operating them at a loss ?

Edited 2012-10-19 08:45 UTC

Reply Score: 2

RE[2]: Who cares about analysts?
by jared_wilkes on Fri 19th Oct 2012 10:18 UTC in reply to "RE: Who cares about analysts?"
jared_wilkes Member since:
2011-04-25

No, GOOG doesn't generate 97% of its revenue from ads; it generates 97% of its profits. This qtr Motorola represented 18% of revenue.

Reply Score: 2

Three things
by zaine_ridling on Thu 18th Oct 2012 20:01 UTC
zaine_ridling
Member since:
2007-05-13

(1) More than $2bn profit for three months is nothing to laugh at.
(2) Apps are eating into search, i.e., skip the google search box or google app and go directly to 3rd party app itself. Also, lots of people are buying into the proprietary Amazon market for some reason.
(3) Google sold 8 million Nexus 7 tablets, which is a big positive for things to come as they team with Samsung for better hardware among tablets, Chromebooks, and Chromebox.

And let's not forget we're in the worst economic times since the early 1930s. If you have a decent job, you're fortunate. The rest of us are stalled in neutral for now.

Reply Score: 2

RE: Three things
by jared_wilkes on Thu 18th Oct 2012 20:58 UTC in reply to "Three things"
jared_wilkes Member since:
2011-04-25

Where did you read that Google sold 8 million Nexus 7s this quarter?

I know there's an old article about an analyst predicting the possibility that they could sell as much as 8 million Nexus 7s by year end, but that's a different time span, a prediction, and from an analyst. Nowhere in Google's announcement, nor thus far on the call, have they stated a figure for Nexus 7 units sold in the financial quarter.

But maybe I've missed it... so I ask: where did you read that Google sold 8 million 7s?

Edited 2012-10-18 20:59 UTC

Reply Score: 3

It's hard to understand
by sukru on Thu 18th Oct 2012 20:05 UTC
sukru
Member since:
2006-11-19

They make a lot of profit, but still their shares lose 10% value in a day.

These kind of pushes for unreasonable expectations are the main cause of greediness in businesses. If people would be content with regular profits, then I believe there would be less patent wars, and abrupt layoffs.

Reply Score: 4

RE: It's hard to understand
by Bill Shooter of Bul on Thu 18th Oct 2012 20:56 UTC in reply to "It's hard to understand"
Bill Shooter of Bul Member since:
2006-07-14

At a basic level, stocks are often valued according to there revenue per share as well as growth potential. The stock was priced according to what the analysts predicted for their earnings report. That value was off, thus the stock was over priced for the actual amount of revenue, profits they are producing and investors sold off.

Is that greed? I don't think it is. The greed imho, isn't the sell off, its the often speculative build up ( I'm not saying that's the case for the google stock ).

Reply Score: 3

Is that still OSnews?
by digitallysane on Thu 18th Oct 2012 20:11 UTC
digitallysane
Member since:
2011-12-19

I see a lot of posts lately which have little to do, directly, with OS stuff. "Posts" is also quite an exaggeration as most are basically reposts/links from The Verge or others.
This particular story can already be read everywhere on the net, from the BBC to The Verge, and has no connection with the stated purpose of the site. Why do I have to (also) read about it on OSnews?

Reply Score: 2

RE: Is that still OSnews?
by jared_wilkes on Thu 18th Oct 2012 20:19 UTC in reply to "Is that still OSnews?"
jared_wilkes Member since:
2011-04-25

You do not have to.

Reply Score: 1

RE: Is that still OSnews?
by Thom_Holwerda on Thu 18th Oct 2012 20:25 UTC in reply to "Is that still OSnews?"
Thom_Holwerda Member since:
2005-06-29

and has no connection with the stated purpose of the site.


Which would be?

Reply Score: 0

RE[2]: Is that still OSnews?
by fretinator on Thu 18th Oct 2012 20:30 UTC in reply to "RE: Is that still OSnews?"
fretinator Member since:
2005-07-06

To whine like a rusty wheel on a '84 Ford Pinto.

Reply Score: 3

RE[2]: Is that still OSnews?
by Soulbender on Sat 20th Oct 2012 10:24 UTC in reply to "RE: Is that still OSnews?"
Soulbender Member since:
2005-08-18

Which would be?


News about Operating Systems?

Reply Score: 5

Analysts...
by Digihooman on Thu 18th Oct 2012 22:46 UTC
Digihooman
Member since:
2010-05-01

Analysts and other reliable crystal ball gazers predicted stability and continued world economic growth all the way up to the point where the world economies tanked in the recent GFC. If you bet solely on their reading of the tea leaves you truly are a thrill-seeker. Good luck to you. I'm sure the same analysts saw great value in Facebook shares at the recent IPO. Me, I slaughter my own chicken and read the entrails for a reliable forecast.

Reply Score: 3

RE: Analysts...
by kwan_e on Fri 19th Oct 2012 02:01 UTC in reply to "Analysts..."
kwan_e Member since:
2007-02-18

Me, I slaughter my own chicken and read the entrails for a reliable forecast.


Make sure they're free range chickens, otherwise you'll get artificially inflated predictions. Or maybe go the Apple route and consult a couple of turkeys.

Reply Score: 2

RE[2]: Analysts...
by Digihooman on Fri 19th Oct 2012 17:52 UTC in reply to "RE: Analysts..."
Digihooman Member since:
2010-05-01

LOL, you just put the icing on my cake! Cheers.

Reply Score: 1

Cash stock pile
by Vai777 on Fri 19th Oct 2012 13:45 UTC
Vai777
Member since:
2005-09-02

Just to reassure everyone ;)

"The company reported that it's cash stock pile had reached $45.7 billion."

Reply Score: 3