Google, Inc. (NASDAQ: GOOGL)
GOOGL Earnings Beats Analysts Forecasts
Yesterday, July 16th 2015, Google reported fiscal second-quarter earnings after the market close. Instantly, shares began to skyrocket well over its closing price of $ 601.78 to a price level breaking previous all-time high and setting a personal stock price record. Shares traded as high as $683 in after-market frenzied activity and closed the after-hours session at 8:00 pm at $675.00 or up $73.22 nearly 13% higher. This after hours price action is quite substantial when you consider the fact that Google traded up during the regular trading session $17.82 which equates to a 3 percent move already. Whether there were large institutional stock traders who may have learned early about the subsequent earnings release, or earnings traders took a gamble, no one really knows but the intraday price move was impressive given that the overall markets seemed to meander after once again gapping up on economic reports and Greece and China’s overnight developments.
Google Inc. The Numbers, The Reasons and CFO Comments
Shares of Google, one of the most favorite Darlings for mutual funds and hedge funds, reported today that Quarterly revenue rose 11% year over year or $6.99 per diluted – share. Analysts, on average, were only expecting adjusted earnings of $6.75 per share. Recently appointed CFO Ruth Porat had this to say; Our strong Q2 results reflect continued growth across the breadth of our products, most notably core search, where mobile stood out, as well as YouTube and programmatic advertising. We are focused every day on developing big new opportunities across a wide range of businesses. We will do so with great care regarding resource allocation.
Not Just An Internet Juggernaut
While we all know that Google helps us find things on the internet every day of our life, Google does not only possess an ever-growing stronghold in just internet. They have begun working on a driverless vehicle, own the Android operating Cellular platform, as well as buying a home / office temperature control panel called Nest. With so many smaller and larger unknown projects Google is working on it is easy to see why so many investors, fund managers and day traders want to be involved with the shares. The only issue for smaller investors is the share price, which at $600 per share makes it difficult but not impossible to get involved. In a future article I will discuss how with Stock options, an average investor can participate in long term and shorter term trading of the shares such as Google.
Please see the above chart showing Google’s trading activity since the beginning of 2015. The far right shows the incredible recent run-up from a basing pattern which seems to have been waiting for the earnings report to be released.
Google Inc., a technology company, builds products and provides services to organize the information. The company offers Google Search, which provides information online; Google Now that offers information to users when they need it; AdWords, an auction-based advertising program; AdSense, which enables Websites that are part of the Google network to deliver ads; DoubleClick Ad Exchange, a marketplace for the trading display ad space; and other advertising platforms, such as AdExchange and AdMob. It also offers YouTube that offers video, interactive, and other ad formats; Android, an open source mobile software platform; hardware products, including Chromebook, Chrome OS devices, Chromecast, and Nexus devices; Google Play, a cloud-based digital entertainment store for apps, music, books, and movies; Google Drive, a place for users to create, share, collaborate, and keep their stuff; and Google Wallet, a virtual wallet for in-store contactless payments. In addition, the company provides Google Apps, which include Gmail, Docs, Slides, Drawings, Calendar, Sheets, Forms, Sites, etc. for people to work anywhere, anytime, on any device without loss of security or control; Google Maps Application Programming Interface; and Google Earth Enterprise, a software solution for imagery and data visualization. Further, it offers Google+ to share things online with people; Groups to create mailing lists and discussion groups; Blogger to share the life online with a blog; and Hangouts for group conversations. Additionally, Google provides App Engine, a platform as a service offering; Google Cloud Storage; Google BigQuery for real time analytics; Google Cloud SQL to store and manage data using a relational MySQL database; Google Compute Engine, an infrastructure as a service platform; and Google Developers to find all Google developer documentation, resources, events, and products. Google Inc. was founded in 1998 and is headquartered in Mountain View, California. Yahoo! Finance