It’s tough to maintain an indefinite upwards trajectory when it comes to financials; even Apple had to stop for a while. So, for some, Google missing analysts forecasts isn’t that shocking.
Big numbers were expected, and relatively big numbers were announced; just not big enough as was generally estimated. It reported $14.1 billion in revenue, which comes out to about 19% increase from Q2 last year, but below the $14.4 billion estimated.
It also reported an EPS (earning per share) of $9.56 versus an expectation of $10.40. Still, net income was $3.23 billion.
So here’s the question:
Is Google the victim of overly high expectations, or are there issues with delivery?
There are worse things to be than unfairly pegged for greatness, and Google sure has had a magical few years. It’s mobile platform is thriving, projects like Glass and Fiber are intriguing, and it’s work in South Africa is being lauded even as it creates positive mindshare.
On the other hand, not everyone shares my enthusiasm for the Microsoft acquisition, and there might be good cause for bearishness there until the rumored Moto X arrives and (hopefully) delivers.
In any case, I don’t see too much wrong in keeping the bar high. As for the stock price, it dropped under $900.
Just sad.
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