Google (GOOG) stock took a huge hit last week following its earnings call, dropping and incredible 47 points or 8.26% from closing the day before. That's $15B in market cap and its biggest one day loss since the 2008 Bear market.
Google surpassed revenue expectations by a significant margin and missed consensus EPS by mere pennies, so why did the stock get hit so badly?
Cowan's Jim Friedland notes,
Google's Q1:11 revenues exceeded expectations. However, EBITDA and EPS were slightly below consensus estimates due to a previously announced ramp in headcount, a 10% salary increase, and a jump in marketing to acquire Chrome users and new advertisers.
Wall St. was expecting a 8.10-8.13 EPS number. Google could only muster 8.08, which was less than 1% off. $15 Billion in Market Cap gone.
What's going into this thinking? More
The New/Old Google CEO made some important moves in his first week.
Co-Founder Larry Page took back the helm of Google(GOOG) a week ago and has made some bold moves over the past week. Let's take a look at what has transpired and what's likely to come.
Within 24 hours of taking control, Google announced it was seeking to buy up Nortel patents, which would put it on more equal footing in MORESeth Weintraub - Apr 11, 2011 11:03 AM ET
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