This Day On The Street
Continue to site
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

The Digital Skeptic: Annual Reports Show Year to Forget for Info-Age Giants

NEW YORK ( TheStreet) -- If the yearly annual statements from Google (GOOG - Get Report), Facebook (FB - Get Report) and Amazon (AMZN - Get Report) are any indication, this will be a year to forget.

American equities are wondering in an unfamiliar hill. A real -- if slight -- rally is afoot, based as much as anything on optimistic annual sales and earnings from the three companies, each of which posted double-digit revenue growth for the full year. Shell-shocked investors then poked their noses out of their Groundhog Day holes and realized the Dow might actually be comfortable with 14,000.

I was stunned.

You should know, 10-K annual report data is what us investor geezers live for. Aside from full-year performance being what matters, there's none of the 10-Q quarterly earnings bogosity. Instead, the 519-year-old financial liturgy of presenting results in comparable tabular form is continued so, as Father Luca Pacioli first did in 1494, investors can soberly compare the balance sheets -- the income statements; statements of cash flow came much later -- for any company.

That gives a sense if those numbers match the larger story the company is trying to tell.

So huddle up and let's take a throwback walking tour of the annual income statements for our "Big Information Three."

Google gone wild
It's Google's economy right? So let's start with this Mountain View, Calif., Web services giant. The company was not shy in bragging about revenues gone wild for a stunning 36% increase in sales -- to a world-beating $50.1 billion.

"Not a bad achievement in just a decade and a half," was CEO's Larry Page's scrubbed, investor relations-ready line.

Even more remarkable for an information age company, there was more real earnings, rather than less, in 2012. Bottom-line net income rose a healthy 10.3%, to $10.7 billion for the 2012 period. Investors ignored the 43% increase in total costs and expenses for the year and off the stock went for say an 8 percentish bull ride.

Digital-age mission accomplished, right?

Well, except when you compare that with the annual income statement story told by the other members of our information-age trio.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr 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

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AMZN $671.32 -1.83%
FB $117.43 -0.96%
GOOG $692.36 -0.84%
AAPL $95.18 1.64%
TSLA $232.32 -3.92%


Chart of I:DJI
DOW 17,750.91 -140.25 -0.78%
S&P 500 2,063.37 -18.06 -0.87%
NASDAQ 4,763.2240 -54.37 -1.13%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs