Him with his Google in his Mouth
Boy, one thing you can say for Google (GOOG -- click to register for free RT streaming quote) -- they definitely don't know how to do guidance.
This has been the worst overall day I've had in the market in quite some time -- the portfolio was down by about 2.5% today, thanks in large part to Google but also due to a pretty wide selloff in many of my holdings. Shanda I'll have to write about when I've had more time to review the release and the conference call, but that was a pretty ugly fall, too. PDL Biopharma released more good earnings but no huge news, which is what we ought to have expected, and their shares are doing just fine today. Marvel is performing very well, too, so maybe folks are coming around to my assessment that it's time to look at 2007.
But most everything else had an awful day. Google really has a headlock on market sentiment, it seems, and the bad consumer confidence numbers and rebounding economic growth seem to have everyone totally confused and, for the most part today, heading for the exits.
I'm a little shocked, frankly, that Google sold off as much as it did following the CFO's comments about the growth rate declining, and about the need for Google to tap new markets -- there wasn't any surprise in there, though I suppose hearing anything out of such a tight-lipped company impacts the market.
Of course, their growth will slow down -- that falls into the "duh" category. It's already slowing down, they've bumped down from 100%+ growth to 80% to whatever it is now, I think something between 40-50%. I still love the company and have no idea whether the shares are really worth $300 or $500 right now, but I know they will continue to grow their business even though the growth rate will decelerate.
And of course, they need to expand into new markets. A look at Google Labs, or the Google Pack, or Google Video or the new Google payment system will tell you what any investor should want to hear: They're trying out a lot of new things, and they're letting their huge brain trust of engineering talent throw new ideas at the wall to see what sticks. I'm fairly confident that some of these services and ideas will bear fruit, and that Google will be able to monetize some of the great things they do outside of search and advertising ... eventually. And don't forget -- new markets doesn't just mean "not search advertising" ... it also means, the rest of the world. The Internet is not yet everywhere, and neither is Google.
And perhaps I'm swimming against the tide, but I'd prefer they maintain their Wall Street silence instead of trying to sneak out the partial guidance trial balloons they've been doing since their last earnings release. I liked them a lot better when they were thumbing off Wall Street.
My advice to the Googlers, not that they're listening: Don't worry about making life any easier for the analysts, just do your job, follow through on your commitment to do right by long term shareholders, and grow the business.
And my reminder to myself: Stay diversified.
This has been the worst overall day I've had in the market in quite some time -- the portfolio was down by about 2.5% today, thanks in large part to Google but also due to a pretty wide selloff in many of my holdings. Shanda I'll have to write about when I've had more time to review the release and the conference call, but that was a pretty ugly fall, too. PDL Biopharma released more good earnings but no huge news, which is what we ought to have expected, and their shares are doing just fine today. Marvel is performing very well, too, so maybe folks are coming around to my assessment that it's time to look at 2007.
But most everything else had an awful day. Google really has a headlock on market sentiment, it seems, and the bad consumer confidence numbers and rebounding economic growth seem to have everyone totally confused and, for the most part today, heading for the exits.
I'm a little shocked, frankly, that Google sold off as much as it did following the CFO's comments about the growth rate declining, and about the need for Google to tap new markets -- there wasn't any surprise in there, though I suppose hearing anything out of such a tight-lipped company impacts the market.
Of course, their growth will slow down -- that falls into the "duh" category. It's already slowing down, they've bumped down from 100%+ growth to 80% to whatever it is now, I think something between 40-50%. I still love the company and have no idea whether the shares are really worth $300 or $500 right now, but I know they will continue to grow their business even though the growth rate will decelerate.
And of course, they need to expand into new markets. A look at Google Labs, or the Google Pack, or Google Video or the new Google payment system will tell you what any investor should want to hear: They're trying out a lot of new things, and they're letting their huge brain trust of engineering talent throw new ideas at the wall to see what sticks. I'm fairly confident that some of these services and ideas will bear fruit, and that Google will be able to monetize some of the great things they do outside of search and advertising ... eventually. And don't forget -- new markets doesn't just mean "not search advertising" ... it also means, the rest of the world. The Internet is not yet everywhere, and neither is Google.
And perhaps I'm swimming against the tide, but I'd prefer they maintain their Wall Street silence instead of trying to sneak out the partial guidance trial balloons they've been doing since their last earnings release. I liked them a lot better when they were thumbing off Wall Street.
My advice to the Googlers, not that they're listening: Don't worry about making life any easier for the analysts, just do your job, follow through on your commitment to do right by long term shareholders, and grow the business.
And my reminder to myself: Stay diversified.
Labels: GOOG
This article posted by One Guy @ 2/28/2006 05:35:00 PM 0 comments
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