Google did indeed come up with a miss today - no doubt about it. But is it fair to state, as some reports have, that the stock "tumbled" after hours? For more consideration go here:

http://sneakybusiness.typepad.com/sneaky/2007/07/google-misses-s.html

the earnings miss was due in part to acceleration of hiring and one time cost associated with employee bonuses.. I detail it in my report

http://selfinvestors.com/tradingstocks/company-earnings/google/google-goog-sell-off-offers-opportunity-strong-technical-support-at-500/

"UK revenue was $600m, representing a four per cent increase."

But the $ is 12% weaker than it was this time last year, so is the UK market decreasing?

$600m = £293m today

For $600m to be a 4% increase, last year's results would have been $577m

$577m = £315m a year ago.

That's a 7% decrease year on year. And the stock fell 7%. well...

(exchange rates courtesy of Oanda)

If I ran a company that posted Google's growth, did not really *LOSE* anything every year, generated the *REAL* revenue it does, I'd go home and sleep well every night. Screw the "analysts" - when a company meets nearly all of its projections, and exceeds a good number of them, I have no problem with it.

In fact, I'd rather see Wall Street pay more kudos to companies that consistently MEET their projections spot-on. Not "exceed" expectations, but hit them on-target every time. THAT, to me, is a well-run company that truly knows what it's doing and managing to it.

This story underlines why there are so many problems with "cheating" in publicly traded companies: no matter what you do, unless you "surprise" yourself - "OOOH, look, I make BIGGER potty!" - then the "analysts" don't care. So cheat: under-report items one quarter and "save them up for a rainy day", run "off-the-book" projects that can pump a bit of cash in at the appropriate place, etc.

It's like the vignette from Jules Feiffer's "Feiffer's People" about the Worlds Second Greatest Athlete. The guy that can EXACTLY match the world's greatest athletes - to the centimeter - is considered a nobody, no matter how much harder it is to do. A company that can meet its projections because of superior governance and measurement is considered a "poor performer".

Stepping down from soap box now...

With more "education" on the web, it is inevitable that the Google honey trap ads ploy will falter and mark them as part of a problem rather than part of a solution and then they will have another problem they'll be looking for a solution to...... but with all the good will gone. Then it will be costly and also not necessarily effective which will make it even more costly......... from Strategic Heights to Deadly Spiral in a few short steps.

Ah well, thanks for nothing, will be the note in History if they fail to turn things around.

Who do you believe?

6 Jun 2007 -- Sergey Brin testified to Congress that restricting H1-B visa restrictions are preventing new hiring.

http://googleblog.blogspot.com/2007/06/what-us-immigration-policies-mean-to.html

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20 Jul 2007 -- Eric Schmidt (The Register) reported Google hired more than anticipated.

http://www.theregister.co.uk/2007/07/20/google_second_quarter_earnings/