Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Three Tech ETFs Rocked by Google's Earnings Miss

By

Roughly 125 ETFs have Google as a component, accounting for nearly 4% of the stock's total outstanding shares.

PrintPRINT
Google (NASDAQ:GOOG) has, over the past few years, been one of the kings of tech, dominating the broad search market to an extremely impressive degree. The firm has also branched out into a number of other segments such as in the phone platform world, where it has also had a great deal of success.

Thanks to this impressive track record, the firm has managed to surge in price over the past few years and keep its earnings per share high, with double digit earnings growth projected for the foreseeable future. However, the company has run into some issues as of late and appears to be hitting a rough patch, best evidenced by its surprise earnings miss during Thursday trading.

The company experienced an error which caused earnings to go out early, and the figures were not good, showcasing a -17% earnings surprise for the quarter. The firm saw EPS of just $7.35, roughly $1.53 below the Zacks Consensus Estimate of $8.88 (Zacks utilizes a BRNI approach for earnings).

However, revenues were still solid, coming in roughly 18.6% higher than a year ago, while paid clicks surged 33% from a year ago, and 6% higher sequentially. Additionally, this meant that costs per click decreased 15% on an annual basis while this number slumped 3% compared to the previous quarter.

Overall, the surprise about the timing and the shocking miss were disasters for the company's stock price as Google was down nearly double digits before the stock was halted, while it finished the day lower by about 8% or roughly $60/share. Basically, today's slump erased all of the gains that the company had seen in the past four weeks, putting the stock below $700/share as well.

In addition to crushing the share price of Google, the miss also devastated several ETFs in the process. In fact, according to XTF.com, roughly 125 ETFs have Google as a component, accounting for nearly 4% of the stock's total outstanding shares.
< Previous
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
PrintPRINT
 
Featured Videos

WHAT'S POPULAR IN THE VILLE