Investors and Analysts React to Google's (GOOG) Premature Release
Despite weakness in Google's core business, many analysts are keeping their buy rating on Google unchanged, and so far few have ventured to cut their lofty price targets.
"While we do not have the benefit of some of the normal details, Q3 results clearly show that the core business missed expectations, but not as much as some headlines would suggest," said Baird analyst Colin Sebastian.
Analysts are pegging part of the miss to Google's Motorola segment, which was weaker than we anticipated. However, with such a disappointing bottom line, $9.03 EPS vs. $10.65 expected, many long time Google bulls are running for the hills.
In the end, Google's bizarre premature release and the stocks subsequent crash may prove to be an excellent buying opportunity. However, for now, investors are not buying into Google or even analyst's positive spin.
Investors are pointing to the magnitude of Apple's (Nasdaq: AAPL) recent fall from grace, with the stock down $70 from recent highs, and they are shedding holding is both companies, once thought of by many as practically untouchable. Clearly that isn't the case.
Traders are expecting a violent reaction in Google (Nasdaq: GOOG) when trading resumes at 3:20 pm on Thursday.