The report is in and GOOG missed. The market is a brilliantly tough audience too. Here’s a headline from last night:
“SAN FRANCISCO (MarketWatch) — Google Inc. posted a sharp gain in first-quarter profit Thursday, confirming Wall Street’s expectations that the search giant would be an early beneficiary of the post-recession recovery in online-advertising spending.”
Sounds pleasant right?, but GOOG got rocked for $30. Google said their costs increased dramatically as they hired 780 new nerds to take over the world. I don’t understand internet advertising or much about that “clicky” thing that is so important to their bottom line, but I am pretty good at spotting potential “jump the shark” situations. INTC was the flavor of the decade too, until it too just wore off. Hey, a chip is a chip, no matter how cool your big white anti-bacterial helmet is. GOOG will always innovate, but will the same love and appetite for the stock be there? Not for my money. Oh, and BIDU at 100x earnings? You can have that one too.
GOOG should find some support at the 50DMA. GE just beat the number by a slight margin.
Bank of America releases this morning and if is anything like the JPM number, it could put a bid under the financials.
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