Google revenue expectations fell short by nearly $300 million in 4Q 2011, leading to disappointment in the investment sector. Does this signal the demise of the top search engine in the world?
Actually, this “shortfall” needs to be put in perspective. Wall Street analysts predicted Google (Nasdaq: GOOG) would rake in $8.4 billion for the 4th Quarter of 2011, but actual earnings were reported at $8.13 billion. That $270 million gap has analysts running scared and is starting the rumor mill that Google is losing its Midas touch.
The drop off in revenue is being blamed on two major factors: Google’s ad rates underperforming in the European market, and the company actually shooting itself in the foot by rolling out its own social network Facebook challenger, Google+. Seems GOOG is competing with itself!
But the gloomy news is offset by the fact that the company posted a 25 percent increase in revenue over the same fiscal quarter in 2010. So what’s the problem here?
$270 million in missed revenue would be a gigantic headache for lots of smaller companies, and even smaller nations. But for the top search engine on the planet, it’s a drop in the bucket. Is it really cause to go running for the hills?
It’s just another manufactured money crisis engineered by the dollar Gods in charge. When investors are fat, dumb and happy, it’s bad for business. It’s actually sickening to see people getting all worked up over nothing. Unless there’s a master plan behind the hysteria. After all, Google has met or exceeded its revenue projections for 9 quarters straight!
It’ll be interesting to see how this plays next year if the company doesn’t meet its projections for the year end 2012. Oh wait…
There isn’t going to be a next year…
Sell! Sell! Sell!