Google Beats Earnings As Eric Schmidt Hands Over CEO Spot To Larry Page, Stock Goes Berserk In After Hours Trading

Tyler Durden's picture

Google trading in afterhours is like a ritalin-fueled, amphetamine-infused roller coaster ride. After opening $25 higher, the stock subsequently turned red. And while results were great, the executive shake up which sees Eric Schmidt becoming Chairman and Larry Page CEO is spooking the stock. Perhaps that explains why GOOG has been one of the biggest insider sellers in past months...

Earnings details:

  • Q4 revenue USD 8.44bln vs. Exp. USD 6.06bln
  • Q4 paid clicks rose 18% vs. year ago
  • Q4 revenue ex-tac USD 6.37bln
  • Q4 traffic acquisition costs USD 2.07bln
  • Q4 average cost-per-click rose 5% vs. year ago
  • Q4 sites revenue USD 5.67bln
  • Q4 international revenue USD 4.38bln
  • Q4 network revenue USD 2.50bln
  • Larry Page to take charge of day to day operations as CEO

And here is the Larry Schmidt explanation for why he is leaving:

When I joined Google in 2001 I never imagined—even in my wildest
dreams—that we would get as far, as fast as we have today. Search has
quite literally changed people’s lives—increasing the collective sum of
the world’s knowledge and revolutionizing advertising in the process.
And our emerging businesses—display, Android, YouTube and Chrome—are on
fire. Of course, like any successful organization we’ve had our fair
share of good luck, but the entire team—now over 24,000 Googlers
globally—deserves most of the credit.

And as our results today show, the outlook is bright.
But as Google has grown, managing the business has become more
complicated. So Larry, Sergey and I have been talking for a long time
about how best to simplify our management structure and speed up
decision making—and over the holidays we decided now was the right
moment to make some changes to the way we are structured.

For the
last 10 years, we have all been equally involved in making decisions.
This triumvirate approach has real benefits in terms of shared wisdom,
and we will continue to discuss the big decisions among the three of us.
But we have also agreed to clarify our individual roles so there’s
clear responsibility and accountability at the top of the company.

will now lead product development and technology strategy, his greatest
strengths, and starting from April 4 he will take charge of our
day-to-day operations as Google’s Chief Executive Officer. In this new
role I know he will merge Google’s technology and business vision
brilliantly. I am enormously proud of my last decade as CEO, and I am
certain that the next 10 years under Larry will be even better! Larry,
in my clear opinion, is ready to lead.

Sergey has decided to
devote his time and energy to strategic projects, in particular working
on new products. His title will be Co-Founder. He’s an innovator and
entrepreneur to the core, and this role suits him perfectly.

Executive Chairman, I will focus wherever I can add the greatest value:
externally, on the deals, partnerships, customers and broader business
relationships, government outreach and technology thought leadership
that are increasingly important given Google’s global reach; and
internally as an advisor to Larry and Sergey.

We are confident
that this focus will serve Google and our users well in the future.
Larry, Sergey and I have worked exceptionally closely together for over a
decade—and we anticipate working together for a long time to come. As
friends, co-workers and computer scientists we have a lot in common,
most important of all a profound belief in the potential for technology
to make the world a better place. We love Google—our people, our
products and most of all the opportunity we have to improve the lives of
millions of people around the world.

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Salinger's picture

WTF the price goes higher, I'm just not sure which one is Darth and which one is Palpatine

66Sexy's picture

only up  2 bux after hours = dead meat tomorrow.

Salinger's picture

what screen are you looking at??? it's up 13

Cdad's picture

The way our current market works, it is probably both up 2 and up 13...depending on which fractured exchange desk you are stumbling through.

What has become very clear is that the institutional participants in the Pachinko Banana Tree Republic do not care that market credibility is approaching zero.  This fact does not bode well for us in our future.

You would think that the SEC would be concerned.  Curious...oh well, now on with the circus! 

Mr Lennon Hendrix's picture

Give the President's Working Group on Financial Markets a minute.  They are recalibrating their portfolio.  They have to decide how many dollars they should move from "short gold" to "goog".

Sudden Debt's picture

only 4 billion market cap increase. 4 BILLION PLUS!!






This is so BS

Reggie Middleton's picture

Well, I've been bullish on Google since the summer and the high 400s. See It is much more than a mere advertising company. If the market melts down and I can grab some more in the 400s, I'll do it again. You need to go for the unappreciated companies. The world owns Apple, very few respect or eve recognize Google's prospects.

sgt_doom's picture

Truly, it is a sad day for Google.  No more will calls come through for Larry, to have people page him over the PA, saying:

"Call for the there a Schmidthead on the premises.  Will the Schmidthead please pick up on 4155."

The nostaligia is already flowing there.

To all those who missed sgt_doom's short-lived and ill-fated Reality Series,

Pimp My Large Hadron Collider

The DVD series is now available; in regular format and Blu-Ray.  Please send orders addressed to sgt_doom, in care of the Roadkill Tavern, Wayouter Mongolia, Yurt #741.

Orders paid with silver-backed specie will be given preference.

Ladies and gentlemen, the table is open for bets:  will the Higgs Boson turn out to be a matter creating element, or will it be a micro-singularity which sends Geneva back to the Land of the Lost?

(The odds are favoring the latter, unfortunately.)

To those rusty on that matter/antimatter thing:

Matter:  When a bank robber in Austria wears an Obama mask while he is removing money from the banks.

Antimatter:  When Obama, like the Bushniks and Busheviks before him, gives money to the banksters.



NOTW777's picture

bizarre - this has to be machines

Don Birnam's picture

"Would you like to play a game of chess ? I play very well."

-- HAL 9000

DonnieD's picture

Schmidt has been appointed Domestic Spy Czar.

Cheesy Bastard's picture

If you don't like Google taking pictures of your house, then move.  Schmidt said that.  Creepy.

Common_Cents22's picture

Worse than that.  Remember, Schmidt's new role is government outreach, oh and deals.


"If you have something that you don't want anyone to know, maybe you shouldn't be doing it in the first place," Schmidt tells CNBC, sparking howls of incredulity from the likes of Gawker.


But the bigger news may be that Schmidt has actually admitted there are cases where the search giant is forced to release your personal data.

"If you really need that kind of privacy, the reality is that search engines - including Google - do retain this information for some time and it's important, for example, that we are all subject in the United States to the Patriot Act and it is possible that all that information could be made available to the authorities."

StychoKiller's picture

"If you have something that you don't want anyone to know, maybe you shouldn't be doing it in the first place," Schmidt tells CNBC,


Yet, for some reason, you ignore the same principle and insist on wearing clothes in public.  This indicates that you're either a hypocrite or have no valid principles -- perhaps both!

Sophist Economicus's picture

"Perhaps that explains why GOOG has been one of the biggest insider sellers in past months..."


With practically  every other stock on the boards....


Looks like the top for GOOG is in

Sudden Debt's picture

Their new search guides are slowing things down and push the surfers to much in a direction that they want.

They are opening the backdoor for the competition.

The money to be made is finding the new guy.

Also 626 for 1 share is out of my league and to risky, and if they where to split the stock it would tumble.

dwdollar's picture

Google's default settings suck bad right now.  Their asynchronous search feature needs to be deleted and forgotten.

HarryWanger's picture

They smoked earnings! Wow! These big tech companies are really knocking it out of the park. The CEO shakeup should be a positive for Apple. Seems they may feel they need someone better equipped to battle Apple.

Salinger's picture

Schmidt is the genius (evil) that made goog what it is  - but that's the risk of working for a founder unless Larry is going to start wearing a black turtleneck

palmereldritch's picture

Also a regular Bilderberger attendee since 2008 and in that year he was part of the Obama election campaign and BHO's economic recovery team.

Hephasteus's picture

Plus you can really trust the numbers because all you gotta do is google it.

onlymyopinion's picture

Big ol' hat tip to the GOOGSTER.  It might be tough trying to ride GOOG's coatails to 1300 tomorrow, thinking more like that prints coming next week sometime.  It would be cool if we could get 12k Dow and 1300 Snps on the same day. 

SheepDog-One's picture

Google will be under $600 real quick!

onlymyopinion's picture

You're probably right, QUICK.  The buyers will pounce if it does.  GOOG's a future 1000.00+ stock.  See BIDU. 

ColonelCooper's picture

Wanger- You are worse than the cheerleader character played by Will Ferrel on SNL.  Either you are a troll who really can't write at all, or you are gayer than eight guys blowing nine guys.  That's pretty gay by the way.  Thats like a dick for everybody with a spare.

*Credit to Patton Oswald for the dick joke

RobotTrader's picture

Irrespective of whether it closes $50 higher or lower...

The stock has been a stellar performer.

$450 to $600 in 4 months is pretty good.

homersimpson's picture

It'd be more impressive if it wasn't fueled by Banana Ben's freshly made toilet paper..

cowdiddly's picture

Don't worry with inflation and taxes they will get all your gains back.

anony's picture

Not losing any money is rule Numero uno and if you are winning back what the government is taking away from you, and commodities speculators are  confiscsating from you, consider yourself having done very very well.

If you can capture genuine inflation, or as some pundits have it, the Supply/demand distortion that causes increases in prices of everything you need to survive AND the tax increases as well, you've at least done better than 99% of the great and vast unwashed.



Robot Traders Mom's picture

It would be more impressive if you actually had money to invest and move out of Mexifornia

Cdad's picture

By this time tomorrow, it's chart will look just like Apple's...massive volume outside day, lower by the close. 

The NASDAQ rally is over.


Classic Blow Horn [CNBC] juvenile analysis by Joe Teranova on Google.  Paraphrasing, "The price movement is justified, the report is everything you'd want it to be.  I think what matters is if the analysts come out tomorrow and raise estimates." 

WE JUST SAW THAT HAPPEN ON APPLE, WHICH CONTRIBUTED/CAUSED THE STOCK TO TOP OUT AND REVERSE.  It's called top ticking.  Again, another fool with clear evidence to the contrary, thinks that what he is thinking is affirming of the contrary anyway. 

It must be the pressure to constantly say things that causes those boys to actually believe their own BS despite having to climb over mountains of contrary indicators. 

SheepDog-One's picture

Theyve been selling the CRAP out of Google and after hours had basically zero volume...propped it up 1% and thats where it stayed, Id be surprised if its still over $600 in a few days.

Id fight Gandhi's picture

Yep everything is in full boner mode.

This aint good news. Shakeups never are.

NOTW777's picture

waiting for this to settle down;

GOOG weekly showing possible large cup and handle - need 630 to hold tomorrow

faustian bargain's picture

Who's next? Is this a tech sector thing, or are CEOs going to be stepping down all over the place?

SheepDog-One's picture

'Clicks' right back to the Dotcom era, this time on mega steroids.

rubearish10's picture

Apple and Google leadership in question at the same time, ummm.....

cowdiddly's picture

Yep both report blowout earnings immediately followed by Rats jumping ship press release. At least Jobs is sick.

NOTW777's picture

well, ISRG is popping

John Law Lives's picture

Fundamentals really returned with a vengeance today.  The major markets closed barely in the red.  What a bloodbath.  If Bernanke read this site, he would get a chuckle.

BlackSea's picture

Please consult Dr Copper before you get your panties in a knot that the dip is over.

RobotTrader's picture

Talk about "Doomers Remorse"....

The "Financial Endgame" types are watching gold sink to new lows after hours....

While these Nasdaq names like ISRG take off like bottle rockets.....

"But Jim, you promised!!!......"

lieutenantjohnchard's picture

and you old catfish mouth robo uber bull, being all wise and market savvy, knew the number in advance, bought the daily low at $623.29, and are laughing at the fools not as wise and sage as you.

plocequ1's picture

Spock: But Jim , This is not Logical. The Charts, The math, Wheres the logic!!!

Jim: FU Spock. Im buying Google