It’s a case of “dumb if you don’t, dumb if you do.” Google yet again succumbs to the colorful world of Wall Street.
Largely criticized by the suits for having the gonads to forgo traditional investment banking methods for its IPO, then telling the Street it won’t give earnings guidance, the company suffered what is arguably its biggest blow when it failed to reach analysts’ expectations for earnings that was otherwise stellar.
Taking a cue from the wake of that little debacle, its CFO George Reyes this time tried to rectify the past by stating that growth may slow. The result, as expected, is a stock plunge, not too long after its stock was already inching back towards the $400 mark, taking a nosedive of 13 percent in Tuesday morning trading, before settling down to $362.62, down 7 percent for the day
Largely expected to reach its destined $500-per-share mark before the earnings disappointment weeks back, Reyes acknowledged that "Most of what is left is just organic growth. Clearly our growth rates are slowing. We see that each and every quarter," finally adding that “We are going to have to find new ways to monetize the business."
Which makes you wonder if this is just a red-herring to get everyone’s expectations way down on an already very leery and skeptical public, and priming it for a blowout earnings announcement soon.
More from
CNNMoney