MoneyMaking Machine GOOGLE – Did You Make the Money

Pin It

Apr 21 2007
Linked In
Holy Cow! Did you see how Google Inc. (Nasdaq: GOOG, stock) flies when the stock opened on Apr-20-2007 after announced yet another set of good great earning result? Did you make any money out of this money making beast? In fact, I almost had forgotten to invest in this giant until I re-check the earnings calendar. And when I scrolled down the earnings calendar (my first step of scanning for companies known to me) for the week, I noticed the favorite name “Google”.
I actually checked the earnings calendar earlier (on Friday of the second week of Apr) but whenever you do that you’ll realize most of the earning dates are not CONFIRMED. If you’ve been trading option, you’ll know what I mean. The stock which caught my eyes then was Citrix System Inc (Nasdaq: CTXS, stock) but somehow the earnings date has been changed to Apr-25-2007 (after market close) instead of earlier published Apr-18-2007.It’s a good practice therefore to develop a discipline of checking and re-checking the actual date of earning announcement.

Google Inc. keeps giving Wall Street what it wants – scintillating earnings growth that eclipses analyst estimates quarter after quarter when it announced a 69 percent increase in first-quarter profit to surpass analyst projections by 38 cents per share. If not for expenses incurred for employee stock compensation, Google would have earned $3.68 per share, beating Thomson Financial estimate of $3.30 oer share.
Quarterly revenue reached a new company high of $3.66 billion, a 63 percent increase from $2.25 billion a year earlier. After subtracting advertising commissions and other payments to its partners, Google’s revenue totaled $2.53 billion. That amount was about $40 million above analyst estimates.
Goldman Sachs analyst Anthony Noto restated his “Buy” rating and $620 price target for Google, saying he expects healthy growth for the year. The analyst raised his fiscal 2007 and 2008 earnings per share estimates to $15.10 and $19.50, respectively.
Looking at the chart, I’m hoping the support level of $482 will be formed as a strong base soon. But with all the potential legal suits and complaints about Google being too big might create volatility to the Google’s stock. Already Microsoft Corp. (Nasdaq: MSFT, stock) and AT&T Inc. (NYSE: T, stock) are urging government regulators to block the DoubleClick deal as both are worried sick that Google will gain too much control over the online advertising market.
And in case you’re wondering, nope, I’ve not close my position yet on Google June 2007 470 Call. I would like to see if it can re-test the $ 500 per-share level again (yeah, you can call me a greedy pig). Furthermore with more than 2 months to go, the time-decay has not kick-in yet, not in huge momentum yet. But as I blogged earlier in YAHOO’s Loss is GOOGLE’s Gain -Time to Make Money, this giant is a very risky stock to invest either in stock of option trading. In terms of gap-up value, this is the highest gap-up (a whopping $19 from Thursday’s closing to Friday’s opening) in the history of my blogging in FinanceTwitter. How can I not love this stock?

# TIP: It’s a good practice to check the earnings calendar if your option-trading strategy depends on it’s announcement.
Other Articles That May Interest You …

Pin It

FinanceTwitter SignOff
If you enjoyed this post, what shall you do next? Consider:

Like FinanceTwitter Tweet FinanceTwitter Subscribe Newsletter   Leave Comment Share With Others


Add your comment now.

Leave a Reply


(required)(will not be published)