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Google(GOOG) announced earning that were below expectations. The stock is down by roughly $40, largest ever (not by % points though). I played earnings at 510/520 and 610 butterflies and I shall update the results once market opens.
Though earnings still rose by about +28%, but that’s what is not “expected” from Google. It has to supercede the expectations. Recall I talked about potential winning formula for stocks to move wildly.
As per Yahoo finance-
Capitalizing on the Internet’s largest ad network, Google earned $925.1 million, or $2.93 per share, during the three months ended in June. That compared with net income of $721.1 million, or $2.33 per share, at the same time last year.
If not for costs associated with employee stock compensation, Google said it would have earned $3.56 per share. That figure missed the average analyst estimate of $3.59 per share among analysts polled by Thomson Financial. It marked just the second time that Google hasn’t exceeded analyst expectations in its 12 quarters as a public company.
Revenue for the period totaled $3.87 billion, a 58 percent increase from $2.46 billion at the same time last year.
After subtracting commissions paid to its advertising partners, Google’s revenue was $2.72 billion — about $40 million above analyst projections.
Was it a bad quarter, I don’t think so. That’s good for long term. But hey, this was a specualtive play to take advantage from short term movement.
Profitable trading, OP
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