Google’s Go-Nowhere Earnings Cycle
How many times can this game be played? Google’s (GOOG) business strategies are questioned, recent acquisitions look less desirable, and doubts arise about the company’s ability to grow advertising revenues. All the while, the stock price meanders. Then: Voila! A nice, big earnings report drives up the price and silences the critics. However, the party soon ceases, and the cycle begins again.
The problem is that once-a-quarter happy time cannot offset the rest of the realistic quarter. The same management making the same mistakes over time makes a lousy investment. How bad is it?
This article is posted on SeekingAlpha.com