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Google shares are plunging today

   
4:53 pm on Oct 18, 2012 (gmt 0)

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Google shares are plunging today

[businessinsider.com...]
4:55 pm on Oct 18, 2012 (gmt 0)

WebmasterWorld Administrator brotherhood_of_lan is a WebmasterWorld Top Contributor of All Time 10+ Year Member Top Contributors Of The Month



I guess investors didn't like today's doodle.

Any news on why?

Ah...earnings out today @ 4PM EST
4:58 pm on Oct 18, 2012 (gmt 0)

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lousy earnings leak... and it tanks by almost 10%! probably this drop was never seen in its history...
5:13 pm on Oct 18, 2012 (gmt 0)

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Any news on why?


They did not beat expectations, Wall Street expected bigger profit numbers.


Revenue soared 45% to $14.10 billion - Panda/Penguin working as expected but not enough to prevent slide in earnings.

[edited by: TypicalSurfer at 5:21 pm (utc) on Oct 18, 2012]

5:14 pm on Oct 18, 2012 (gmt 0)

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They halted trading...
5:19 pm on Oct 18, 2012 (gmt 0)

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They halted trading...


It's unusual to make any earnings announcements during trading hours, these things are almost exclusively done before or "after the bell" in order to prevent trading halts/market disruptions. It's very unusual to announce during trading hours.
5:21 pm on Oct 18, 2012 (gmt 0)

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CNBC is reporting:
In the release, the company said its average cost-per-click declined 15 percent compared to the third quarter a year ago.

I wonder if the preferred placement of paid Google shopping had anything to do with this? I could see merchants paying less per click because Google is in charge of the phrases where PPC shopping results will appear and can show results for both early and late stage terms...
5:21 pm on Oct 18, 2012 (gmt 0)

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Earnings below guestimates. Perhaps G's business model isn't what we were looking for. Perhaps G should have diversifield its income streams. Perhaps G should have had a larger brick and mortor components. Perhaps G has put too many eggs in the Internet basket. G's business should have been more user centered, friendly, and secure! That feels better - I've been waiting 6 years to say that. And, lastly, I hope they all get spanked for insider trading this morning.
5:22 pm on Oct 18, 2012 (gmt 0)

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[bbc.co.uk...]

Apparently released early by mistake?
5:28 pm on Oct 18, 2012 (gmt 0)

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Google says financial printer RR Donnelley filed draft earnings statement without authorisation.

What a mess and now what is the new larry game?
5:33 pm on Oct 18, 2012 (gmt 0)

WebmasterWorld Senior Member g1smd is a WebmasterWorld Top Contributor of All Time 10+ Year Member Top Contributors Of The Month



Oh, only 14 billion?

How many thousands per second is that again?

One word. Greed.
5:47 pm on Oct 18, 2012 (gmt 0)

WebmasterWorld Senior Member beedeedubbleu is a WebmasterWorld Top Contributor of All Time 10+ Year Member



I'm loving this! :)
5:52 pm on Oct 18, 2012 (gmt 0)

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Google share trading suspended according to WSJ:
[online.wsj.com...]

Regards...jmcc
6:07 pm on Oct 18, 2012 (gmt 0)

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I wonder how that drop would look in google earth view maps.
6:10 pm on Oct 18, 2012 (gmt 0)

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Perhaps Panda and Penguin are not paying off after all, relevant results = lower incentive to click ads.

I note the following in the report with some interest but haven't formed a conclusion about it yet.

Paid clicks: Up 33% on a year over year basis, and up 6% on a sequential basis

Cost per clicks: Down 15% on a year over year basis, and down 3% on a sequential basis.

Traffic acquisitions costs: $2.77 compared to $2.21 for same period a year ago.
6:22 pm on Oct 18, 2012 (gmt 0)

WebmasterWorld Senior Member crobb305 is a WebmasterWorld Top Contributor of All Time 10+ Year Member



Perhaps Panda and Penguin are not paying off after all, relevant results = lower incentive to click ads.

Time for a new philosophy at Google, and perhaps some new management/staff. Granted, the earnings-per-click is just part of the picture, but their war on webmasters has to end, their selfish attempts to monetize every niche with their own product offers, and weeding out the existing competition to do so, may not be paying off. Advertising budgets have taken a big hit, for those who have been spanked by Google. This may account for some of the drop in cost-per-click, via a reduction in bid prices/Adwords budgets.
6:39 pm on Oct 18, 2012 (gmt 0)

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BCG analyst Colin Gillis said: "Click prices declined for the fourth consecutive quarter after rising for eight consecutive quarters before then.

"The other bit is the Motorola millstone had been ignored by the market and - boom - now you've got weak revenue from Motorola."

Those are a couple of reasons, before we go toasting their demise just remember that if they start losing money each quarter then the gloves will really come off and they will really shaft the webmasters - yes they can be much more nasty, believe it.
6:46 pm on Oct 18, 2012 (gmt 0)

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As much as I would like to blame this on the ridiculous serp results in the last year or more I have to say Wall Street seems to over exaggerate everything. I wished they would get rid of all of the shorting and options plays of stocks and make it where if you believe in a company you can invest and not have to sit around watching stocks all day long. I will say that Google does have bad results right now one example is a search for something health related that should not be spam filled and all I got was an entire results page with nothing but Livestrong's results. I mean really? Google does have Youtube and it's hands in other things but whatever their search team thinks they are doing so good in their war on on backlinks they are ignorant to the fact their results suck right now.
6:50 pm on Oct 18, 2012 (gmt 0)

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Let's see what they look like after all the bad publicity that's coming; as if anti-trust and privacy concerns weren't enough they may be hauled before the UK House of Commons to explain why they pay so little tax here and the journalists will love it. Lots of little chickens will be coming home to roost over the next few months.
6:55 pm on Oct 18, 2012 (gmt 0)

WebmasterWorld Senior Member crobb305 is a WebmasterWorld Top Contributor of All Time 10+ Year Member



As much as I would like to blame this on the ridiculous serp results in the last year or more I have to say Wall Street seems to over exaggerate everything

I know a couple of webmasters who had to eliminate their Adwords campaigns after Penguin/Panda. Google may like to think that they are pushing webmasters to Adwords, but the opposite may be happening (though I obviously can't prove it). If my site is eliminated from the SERPS, my revenue drops, and my ad budget goes down. Period. This cumulative effect could account for the drop in click prices (despite an increase in actual clicks).

FTC Antitrust case, and other issues, won't help matters. I'm sure the search team will laugh off such speculation, but this will be for the shareholders to determine.
6:59 pm on Oct 18, 2012 (gmt 0)

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It seems that their aquisition of Motorola is dragging them back considerably. They have a golden touch with search but just about everything else they touch turns to dust.
7:07 pm on Oct 18, 2012 (gmt 0)

WebmasterWorld Senior Member leosghost is a WebmasterWorld Top Contributor of All Time 10+ Year Member Top Contributors Of The Month



Those are a couple of reasons, before we go toasting their demise just remember that if they start losing money each quarter then the gloves will really come off and they will really shaft the webmasters - yes they can be much more nasty, believe it.

None of this financial "news" was actually "news" to those at the top of Google..( they have had the real figures for months ), and they already began the "nastiness" .."Knowledge graph with carousel".. AKA all the ( your ) content that we "found" on the internet ( it doesn't all come from wikipedia, and less and less of it will come from wikipedia ) ..and "all the content that our "human" ( crowd sourced ) scraper partners ( ehow foremost amongst them ),"can spin^^^^steal, from you, for us to put ads around..
7:10 pm on Oct 18, 2012 (gmt 0)

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"The core business seems to have slowed down pretty significantly, which is shocking," said B. Riley analyst Sameet Sinha. "The only conclusion l can look at is, search is happening more and more outside of Google, meaning people are searching more through apps than through Google search."

source: Reuters [reuters.com ]

combined with less revenue per click on adwords this (hopefully) looks like the beginning of the end for Google to me and I for one will not miss Google (and Facebook).
7:11 pm on Oct 18, 2012 (gmt 0)

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Google is still making a boatload. the issue is that the boat was a little lighter than expected.

Latest twist in earnings drama:

Based on a report that aired on CNBC a few moments ago, there may be a bigger scandal with Google earnings than their accidental premature release.

CNBC's Jon Fortt reported that, based on conversations with people in the financial community, Google "has been calling around for the past couple of days trying to prepare analysts for this report not to look so great trying to skew their attention towards certain numbers that might not make this look as bad as it does right now."


Read more: [businessinsider.com...]

Thats like really bad, a big no-no.
7:24 pm on Oct 18, 2012 (gmt 0)

WebmasterWorld Senior Member beedeedubbleu is a WebmasterWorld Top Contributor of All Time 10+ Year Member



What I would love to see is a video of Matt Cutts in his brown, designer t-shirt telling the world about this.

"Hey everybody! Matt Cutts here. Today's question comes from John Brinkenfurter from Indiana who is asking why Google's stock price is droppping.

Well, the answer is really in the way we look at the search results. Someone once said to me, I want to show up for San Diego chiropractic. The answer was that they had not purchased Adwords for these keywords ... umm what?

... what do you mean the shares have tumbled? What do you mean that trading has been suspended? I can't afford for this to happen. I have an expensive t-shirt habit that I need to support. What do you mean the writing is on the wall? We have the best search results, how can that happen? Who gives a **** for all the collateral damage, I have a smile that defines "smug" and I need t-shirts! HEELPPP! HEEEELLP! Heeeeeelp!

Does anyone know a smile tattooist? My face is getting sore!"
7:25 pm on Oct 18, 2012 (gmt 0)

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Google has worked really hard over the years to destroy the online advertising market by making clicks available for pennies. Now it finally hits home.

"For the fourth consecutive quarter, the company reported a decline in average cost-per-click, a critical metric that denotes the price advertisers pay Google. Average CPC declined 15 percent from a year ago and 3 percent from the second quarter of this year"
7:26 pm on Oct 18, 2012 (gmt 0)

WebmasterWorld Senior Member crobb305 is a WebmasterWorld Top Contributor of All Time 10+ Year Member



Looks like trading has resumed.
7:29 pm on Oct 18, 2012 (gmt 0)

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I really don't want to crash your party here folks but this is only one quarter. More than anything else I think this is a clear signal (and google loves signals don't they) that a turning point has been reached. It doesn't mean the demise of google but maybe the much needed leveling of the playing field will now begin.
7:31 pm on Oct 18, 2012 (gmt 0)

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Those are a couple of reasons, before we go toasting their demise just remember that if they start losing money each quarter then the gloves will really come off and they will really shaft the webmasters - yes they can be much more nasty, believe it.


At a time when Google are about to be roasted by multiple legislative bodies for alleged abusive practices their best bet would be to keep their heads down not jump right on top of the parapet. That doesn't mean they won't do it, of course.

What exciting times we live in.
7:34 pm on Oct 18, 2012 (gmt 0)

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@sevencubed - its not just one quarter, its the fourth consecutive quarter of diminishing revenues from their only meaningful revenue generator - AdWords

In the real world this is is called an ongoing recession.
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