This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

High Bar Hits Google

Updated from Jan. 31

That's the trouble with high expectations.

After blowing by Wall Street's earnings forecasts and clearing revenue predictions as well, shares of Google (GOOG) slipped Thursday in the wake of the company's fourth-quarter report.

The stock was recently off 0.9%, or $4.34, to $497.16.

On Wednesday, Google reported $3.18 a share in adjusted earnings, far ahead of the $2.92 analysts surveyed by Thomson Financial forecast. Net revenue of $2.23 billion also exceeded the consensus estimate of $2.19 billion.

And revenue would have been even higher were it not for Google's aggressive promotion during the quarter of Checkout, its online payment service that has huge potential down the road, even as it makes Google's ad platform more attractive to merchants in the meantime.

While Google wasn't specific about amounts, the company listed its backing of Checkout as contra-revenue, meaning that it was deducted from the overall revenue figure and may give a muted impression of the company's bottom-line growth.

It's the kind of performance that most investors in a company would happily take. Except that for investors looking at Google, the quarter looks remarkably similar to the third quarter which preceded it. Then, Google exceed the consensus EPS numbers by 8%, as compared with the slightly higher 8.9% this time around. The company cleared revenue estimates by about 3.3% then, a bit more than the 1.8% this time around, but a figure that would be even closer were it not for the Checkout promotion.

1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs