Google KILLS on Earnings, Sending Shares Soaring in After Hours and Baffling Analysts
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Google’s first-quarter profit rises 30 percent, beats analyst expectations
Shares soared in after hours trading over 17% tonight to $526 per share following a steady decline over the past several months, partially precipitated by a report by Comscore indicating that ad clicks were declining. Google (GOOG) had argued in the past the their business model was recession proof and the recent quantitative reporting on ad activity seemed to punch holes in the theory. Tonight, they silenced any critics and rewarded long investors with a whopping $76 pop in the share price in after hours trading.
Carryover Effect for Yahoo, Baidu and more companies?
Note, this was good for Baidu as well, another EverydayFinance portfolio holding. Up 7% in after hours. Yahoo is up only 1%, which is odd. Perhaps a good arbitrage play here…do a pairs trade via long Yahoo, Short Google? Not for me, but there might be a play here.
Google has now exceeded analysts’ expectations on 12 of the 15 times they’ve reporting since going public.
Poetic Justice - Comscore (SCOR) down 8.5% in after hours trading
Following their blown call, the shares are declining heavily with investors questioning just what value their company offers and what this blow means for their reputation moving forward.
Disclosure: The Everyday Finance Portfolio is LONG Google
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