Posted January 22, 2010 10:04 am by with 8 comments

Tweet about this on TwitterShare on LinkedInShare on Google+Share on FacebookBuffer this page

When you’re Google, having a great quarter is not good enough. Apparently, there’s a secret society of Wall Street Analysts that quietly hold Google to a higher standard, says MarketWatch:

However, several analysts maintained their bullish long-term view in the wake of the report, noting that Google missed higher "whisper" numbers even though it handily beat Wall Street’s consensus.

Those whisper numbers meant that Google’s share price is currently drifting 3%, with Google executives likely staring at their stock portfolio wondering what the heck just happened. After all, Google saw net income rise to $1.97 billion in the December quarter, compared with $382 million, earned in the same period a year earlier. Net revenue hit $4.95 billion–beating the target of $4.92 billion Google thought Wall Street was seeking.

Now, here’s something you probably don’t know. All of these numbers can be, let’s say, "massaged." Google likely structured its Q4 numbers to just beat analysts predictions, while keeping some back in reserve for Q1 of 2010. In other words, had Google known about the secret society of whispers, it probably could have topped their estimates too. 😉

Want more? Google took the unprecedented step of airing its Q4 earnings call on YouTube:

PS. Eric, you might find Wall Street treats you a little kinder, if you had a better grasp of your company’s projections. When asked if YouTube will make a profit this year, "I’d assume so, yes," hardly instills confidence. 😉

  • There should be a separate set of “Google Rules” made public for all situations. Success breeds contempt and you can see it play out. Google is far from perfect and many of the concerns that people raise have merit but maybe everyone is so ticked off that this economy is still stalled and Google is making money.

    Who knows? I wouldn’t be too concerned for Google (except the whole “I think so” deal is a bit worrisome.
    .-= Frank Reed´s last blog ..A Nagging Local Feeling =-.

  • Whispers aren’t much of a secret when you can find them when you want at Analysts (and so-called journalists) like to quote them (but never source them) in this generic sense to make themselves sound more in the ‘know’. (If they knew so much in the first place why not publish it in their pre-earnings reports?)

  • A good positve whispering campain, by whoever carrys it out be a great way of generating even more fat cats. We have seen a lot of that kind of thing just before the collapse of the financial system recently.
    Oh for the return of honesty and integrity.

  • LookingConfident

    Hi Andy ….

    I must confess then, that I am a fully fledged “whisperer” but few (up until now) have bothered to take any notice, at all …Strange, that ….In fact, I feel (at times) that I must be the quintesential contrarian?

    At SeekingAlpha – “GOOGLE – It’s all Down Hill from here”

    Opinions? Yes, you know that we ALL have one, right?



  • Very impressive to come up wih such good results every quarter!

  • Analysts (and so-called journalists) like to quote them (but never source them) in this generic sense to make themselves sound more in the ‘know’.

  • Funny to read about whisperers, sounds like a magical story. But seriously how does Google suffer from a bunch of whisperers??? I don’t see it threatening…

  • Pingback: Richard Petersen » Blog Archive » Q4 Results Show Things Looking up for Yahoo()