Early Release Of Google Q3 Financial Report Brings Its Stocks Down

October 19th, 2012 at 8:42 pm

In business, timing is everything. That applies to every aspect of the business process. If a company needs to play it well, then it needs to know about the importance of timing. In the case of Google recently, it may have learned this lesson the hard way.

Google recently found itself in a precarious situation when its Q3 financial report was mistakenly released earlier than usual. For whatever reason, a draft of Google’s earnings report for the 3rd quarter of the fiscal year was released right in the middle of the trading day instead of at the closing bell of trading. And because of the botched timing, some level of panic in the trading floor ensued with regards to Google stocks.

The early draft indicated that the online search giant posted $14.10 billion worth of revenue for the quarter which was a 45 percent increase for the same quarter last year. But in the net income portion of the report, Google posted $2.18 billion which was down from the $2.73 billion the company garnered in the same quarter last year. It may be this as well as some other decreases seen on the Google financial report draft that had some traders and investors worried. It led to Google stock suddenly tumbling down in terms of its stock price. Due to the ensuing panic, trading of Google stocks have been temporarily halted in order to put a stop to the rash of panic selling of Google stocks.

It is just quite interesting how people may perceive certain numbers and how they can cause a sudden panic in the market. Some eventful news can be enough to cause certain stocks to fall. That is classic human behavior at work where emotions can cloud one’s judgment quite easily. The Google earnings report only showed the numbers that are lower than expected. It didn’t provide the reason behind the reduced numbers or what actions were taken that resulted in the lower 3rd quarter numbers. Emotion can be a powerful factor in causing such panic actions to happen in the stock market. And unfortunately, it can sometimes even be more powerful than actual fact in terms of misguiding quite a number of stock investors.


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