“One of the greatest mysteries in our market has continued for another quarter. A few weeks ago, I called Google (GOOG) the most overrated stock in the market. Again, that is overrated, not overvalued, as valuation is a different discussion,” Bill Maurer writes for Seeking Alpha. “Google’s stock has continued to soar higher, despite results that are not up to par. The company continues to be a mystery through complex results, and now a stock split that might make this name a complete mess.”
“Well, the magic show continued last week. Google missed its earnings per share estimate by a decent clip, yet the stock hit a new all-time high,” Maurer writes. “Google also admitted a mistake in regards to the Motorola Mobility deal, and the stock rose on that news before earnings as well.”
“On the top line, the company reported Q4 GAAP revenues of $16.86 billion. That number beat analyst estimates for $16.75 billion. Google’s paid click growth grew by 31% year over year, but the cost per click actually fell by 11% year over year. Motorola Mobility had revenues of $1.24 billion, down 18% year over year, and an operating loss of $384 million,” Maurer writes. “On the bottom line, Google came in with non-GAAP EPS of $12.01. Analysts were looking for $12.26, so this was a clear miss, and earnings growth trailed revenue growth. GAAP EPS were just $9.90, as non-GAAP earnings continue to be 20% or so higher. Yet, Google’s stock soared to new all-time highs on the news. Might I remind you that Apple (AAPL) announced a record quarter for revenues, beat on the top and bottom line, and was crushed. Apple was hit because it missed on iPhone sales and provided weak forward looking guidance. Google doesn’t provide guidance, but is rewarded for its lack of transparency.”
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Apple posts record quarterly revenue, record iPhone and iPad unit sales; shares plummet – January 27, 2014
