July 22, 2005
Google Stock Price Falls on Good News?
Last night Google reported great business news -- its second quarter profits were up 400 percent from the same quarter last year and its revenue ($890 million) doubled from the same quarter last year. Earnings per share were a whopping $1.37 a share. The revenue and earnings per share exceeded analysts' published predictions for the quarter (of $842 million and $1.21 respectively). The company ended up the quarter with $2.9 billion in cash and marketable securities, up $500 million from the previous quarter. Profit margins increased over 24 percent from the same quarter last year.
What did the trading market do with the good, no, outstanding business news -- it hammered the stock. The stock dropped six percent in after-hours trading. I watched the stock decline on the tape while I was viewing Mad Money at 6:00. This is crazy. What do traders except out of this company?? It just tells me that there is irrational interest in this stock.
July 22, 2005 | Permalink
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