If you follow my writing, you know that one of my favorite tech stocks to watch is Google. The company is the world's leader in search and controls the majority of online advertising income quarter after quarter. On Friday, Google reported their earnings for the first quarter. While projections were missed, the stock still climbed. Today, we'll talk about the earnings report, what we saw in the market and what we can expect to see moving forward.
What We Saw From Google's Earnings Report
As mentioned above, Google did miss projections with regard to their first quarter earnings. However, the miss wasn't by much. Here's what they reported…
- Top Line Revenue – In the first quarter, Google produced a total revenue of $13.9 billion; missing analyst expectations of $14 billion.
- Q1 EPS – While analysts expected EPS to come in at $6.61 per share; the actual figure came in at $6.57.
As you can see from the above, Google did miss; but the miss wasn't far off!
What We Saw In The Market And Why
On Friday, Google's stock value grew by more than 3% following the earnings report. This leads to a big question…if earnings were a miss, why is it that the stock surged? Well, there are a couple of reasons…
- Why Earnings Missed – The reason for the earnings miss was the fact that the strong United States dollar caused pain in sales outside of the United States. While this is an issue, it's not one that's likely to last forever. As a result, investors are able to brush off the losses and look for long term gains.
- Employee Growth – The report also showed that the company is slowing down with regard to headcount growth. As a result, we can expect lower operational costs in the future.
What We Can Expect Moving Forward
As a binary options trader, there's no way to make money from past movements. In our industry, it's all about looking to the future. With that said, I'm expecting to see more amazing things from the tech giant moving forward. The reality is that the company is the leader in online advertising. Although earnings were missed, the lower than expected growth is easy to explain by looking at the strong US dollar; which is most likely a short term issue. With that said, continue looking for uptrends to capitalize on because they will be coming!
A Moment Of Silence
Normally, I stick to binary options and investing news and outlook; however, I'm a big follower of Google and a major fan with regard to the talent they have on their team. With that said, I have sad news to report today. Google executive, Dan Fredinburg, passed away this weekend scaling Mt. Everest. He is credited with major involvement in Google's driverless car, the Google Glass and other cornerstone products from the corporation. So, I'd like to send him a final thank you for all he's done to improve the world of technology and offer my condolence to his family, friends, and colleagues; whom I'm sure he's touched throughout his life. With all of that said, I normally ask for comments and thoughts; however, please keep this post comment free to represent a moment of silence for the late and great Dan Fredinburg.