Wednesday, February 01, 2006

If I could afford it, I'd buy Google

From the Los Angeles Times:
After regular trading hours Tuesday, the Mountain View, Calif.-based company disclosed that it earned $372 million, or $1.22 a share, up 82% from $204 million, or 71 cents a share, in the year-earlier quarter. Revenue jumped 86% to $1.92 billion.

On a pro forma basis, which excludes some one-time items, Google earned $1.54 a share. That fell well short of the $1.76 expected by analysts, who failed to anticipate that Google had been bumped into a higher tax bracket after domestic earnings came in stronger than expected.
I don't know much about the financial business, but the analysts missed the elevation in taxes? Did it just kinda' sneak up on them?

Maybe it is many times more complicated. Maybe they are just lazy. But as I read this, assuming it is plain language, I have very little respect for the financial business right now.

So this oversight lead to a devalue of almost 9 percent in market cap, by the way. I think this serves as a fine example of where we should put America's retirement savings: the market is never wrong, except when it is wrong!


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