Here Is Why GOOG Has Plunged By 10% (So Far)

Tyler Durden's picture




 

While everyone knows that GOOG is halted and may or may not resume trading before market close (and no, RRD merely reported the facts, if only early, and as everyone knows the market has a revulsion to reality peeking during trading hours), few are aware just why it is that everyone dumped the stock which soared to all time highs a few short weeks ago. Here it is, in its full visual splendor - Google's Operating Income, which was expected to come in at $3.536 billion printed at $2.736 billion, a 23% miss!

And that's just half the story. The chart below shows not only the historical data, but where the once again massively wrong sell-side crew sees Q4 Operating Income going. GOOG has to see its operating income soar by nearly $1.5 billion in Q4 just to resume its previous upward glidepath.

... Good luck

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Thu, 10/18/2012 - 13:55 | 2901837 HelluvaEngineer
HelluvaEngineer's picture

VIX back to unchanged.  Everything makes perfect sense.

Thu, 10/18/2012 - 13:58 | 2901842 flacon
flacon's picture

OCT 20, GOOG OPTIONS:

 

http://imageshack.us/a/img248/300/googoptions.jpg

 

I don't know if that 680 put was a misprint at 3000%.... or if all the others were misprints (should have an extra zero there)...

Thu, 10/18/2012 - 13:59 | 2901853 economics9698
economics9698's picture

Google clearly did not get the memo, no bad number prints before the election.

Thu, 10/18/2012 - 14:01 | 2901867 flacon
Thu, 10/18/2012 - 14:08 | 2901895 redpill
redpill's picture

but but but GOOG is a value stock with a great dividend and fantastic forward-looking growth model.

 

Oh wait...

 

Sorry muppets.  Google Night and Google Luck.

Thu, 10/18/2012 - 14:23 | 2901968 MillionDollarBonus_
MillionDollarBonus_'s picture

 

.

 

Thu, 10/18/2012 - 14:25 | 2901988 ParkAveFlasher
ParkAveFlasher's picture

The key to a futures position is to position yourself long enough that it pays off after you die. You know, if you bought in right after the effects of Black Tuesday subsided, and timed it right, you could be now one very rich and contented 130-year-old man. +1

Thu, 10/18/2012 - 14:26 | 2901989 the not so migh...
the not so mighty maximiza's picture

I actually agree with you . THE END

Sun, 10/21/2012 - 00:27 | 2907323 MeelionDollerBogus
MeelionDollerBogus's picture

AnAnonymousCitizenism says this is the sound of one UST clapping

Thu, 10/18/2012 - 14:29 | 2902000 EscapeKey
EscapeKey's picture

Argh please use imgur.com next time instead of that ad page.

Thu, 10/18/2012 - 18:33 | 2902768 soccerballtux
soccerballtux's picture

please explain

Thu, 10/18/2012 - 23:01 | 2903337 flacon
flacon's picture

If you bought a put you could have made 3600%:

 

http://imageshack.us/a/img443/1658/googoct20.jpg

 

 

Thu, 10/18/2012 - 14:03 | 2901870 Wakanda
Wakanda's picture

Somebody wants Mittens in.

Thu, 10/18/2012 - 14:08 | 2901896 The Shootist
The Shootist's picture

Well, that's what Lindsey Williams says. For what it's worth.

Thu, 10/18/2012 - 14:13 | 2901915 FubarNation
FubarNation's picture

Ladies and Gentlemen by the providence of God I was allowed to live with the elite for 3 years.  Get your pencil and paper ready to write down these buzz words.  Devil's messiah.  Currency of the elite.  Keep your eye on China.  What I have to tell you could save your dinner table.

 

I can't remember what else that goofy old man has to say.  Very intesting entertaining however.  Always makes me laugh.

Thu, 10/18/2012 - 14:32 | 2902005 EscapeKey
EscapeKey's picture

I beg of you, write this down. I play buzzword bingo with a friend whenever he's on the Alex Jones show.

Can't take a word of his seriously, but I do find him amusing.

Thu, 10/18/2012 - 14:36 | 2902020 FubarNation
FubarNation's picture

'I beg of you' - I'm ashamed that I didn't remember that one.  Classic LW lingo.

Thu, 10/18/2012 - 14:53 | 2902077 Buckaroo Banzai
Buckaroo Banzai's picture

Lindsey Williams is an easy target but a lot of what he says makes sense. Just sayin'.

Thu, 10/18/2012 - 16:41 | 2902459 imbrbing
imbrbing's picture

He has to many "ELITE" friends for my taste

Fri, 10/19/2012 - 06:23 | 2903688 jmcadg
jmcadg's picture

Very true, but between him and Alex Jones there is so much waffle. Why take five minutes when you can make it last two hours - 'Did you get that'.

Thu, 10/18/2012 - 14:36 | 2902021 The Shootist
The Shootist's picture

I can't stand him because he takes 40 minutes to tell you 3 quick points he learned. The only interviewer that makes it bearable is Alex Jones because he gets all hyper and cuts Williams off, finishes his point for him.

 

He uses 10 sentences to get to the point. We don't have all day Lindsey, spit it out already.

Thu, 10/18/2012 - 14:42 | 2902042 EscapeKey
EscapeKey's picture

You wouldn't happen to have that name (The shootist) from an episode of the FBI Files? Just asking, as that episode was on last night...

Thu, 10/18/2012 - 15:08 | 2902142 FubarNation
FubarNation's picture

Can you imagine watching his whole DVD set?  I bet no one has ever finished watching the whole thing.

Thu, 10/18/2012 - 19:21 | 2902882 blunderdog
blunderdog's picture

He's just another carnival barker.  They're not permitted any dead air.

http://www.youtube.com/watch?v=y8YcEmKleJk&feature=related

Thu, 10/18/2012 - 14:13 | 2901916 ParkAveFlasher
ParkAveFlasher's picture

Sounds like a job for Gold Sacks.

Thu, 10/18/2012 - 14:14 | 2901924 malikai
malikai's picture

Goldman said so too, with their wallets.

Thu, 10/18/2012 - 22:31 | 2903292 Non Passaran
Non Passaran's picture

Not the googs, they love Obama's green projects and donate to the Marxist.

Thu, 10/18/2012 - 15:38 | 2901872 SILVERGEDDON
SILVERGEDDON's picture

If the market toilet flushes in the forest, everybody hears it.

The Emperor of Google has no clothes.


If the foo shits, wear it.

Bitchez. 

Thu, 10/18/2012 - 14:09 | 2901879 vast-dom
vast-dom's picture

GOOGLUCK with that.

Thu, 10/18/2012 - 14:08 | 2901898 alien-IQ
alien-IQ's picture

I saw the Oct 680 puts displaying +3600% on my platform. May have been a glitch. right now it's +281%

Thu, 10/18/2012 - 14:10 | 2901906 vast-dom
vast-dom's picture

this whole motherfucker is one big multifaceted glitch.

Thu, 10/18/2012 - 14:19 | 2901958 alien-IQ
alien-IQ's picture

you won't get any argument from me on that

Thu, 10/18/2012 - 14:04 | 2901885 Ruffcut
Ruffcut's picture

Fuck, I thought they were tying up profitable government contracts.

I wouldn't be surprized for this  to be a controlled burn.

The perfect time to trick and scare people is during halloween.

Thu, 10/18/2012 - 14:12 | 2901913 ACP
ACP's picture

There's nothing like the Fed & HFT criminal scum working together...hand-in-hand......with $85 billion of freshly printed money designated for criminal stock manipulation...in order to make this world a better place...despite the fact that earnings are tearing up the whole game.

Thu, 10/18/2012 - 13:57 | 2901840 kliguy38
kliguy38's picture

Donally takes out Page

<iframe width="420" height="315" src="http://www.youtube.com/embed/RfRrA6XP1o0" frameborder="0" allowfullscreen></iframe>

Thu, 10/18/2012 - 13:57 | 2901843 slaughterer
slaughterer's picture

This does not inspire confidence in market participants whatsoever.  

Thu, 10/18/2012 - 13:59 | 2901851 GolfHatesMe
GolfHatesMe's picture

Unfortunately Algos do not know the term

Thu, 10/18/2012 - 14:11 | 2901914 e-man
e-man's picture

Hmmm....I see the transmogrifier is working well.

Thu, 10/18/2012 - 14:50 | 2902068 gjp
gjp's picture

+1 Love Calvin and Hobbes

Thu, 10/18/2012 - 14:05 | 2901889 insanelysane
insanelysane's picture

Training is haltered in order to "reorder" all of the bids so the right people don't get crushed.  This type of event generates so much volume that even the algos have trouble front running.  Trading will resume with .0000005 minutes left in the day to let the HFT get their money.

Thu, 10/18/2012 - 16:08 | 2902354 Bob
Bob's picture

I like to think I like the truth as much as anybody, but . . . owww.  That shit hurt right there. 

Thu, 10/18/2012 - 13:58 | 2901847 HelluvaEngineer
HelluvaEngineer's picture

Any chance small business owners across America finally realized that Google advertising is a complete and total waste of money?

Thu, 10/18/2012 - 14:13 | 2901918 dwdollar
dwdollar's picture

I only use them when they give me free promos.

Thu, 10/18/2012 - 14:36 | 2902022 NotApplicable
NotApplicable's picture

I initially read that ad "free ponies." It made more sense then.

Thu, 10/18/2012 - 15:08 | 2902145 flacon
flacon's picture

I thought it said free POMO's (Permanent Open Market Operations)

Thu, 10/18/2012 - 14:18 | 2901954 ponyboy96
ponyboy96's picture

Where have you been living?  It has one of the highest ROI's out there and can be directly attributed to sales/leads via analytics.  You can't say that with most other marketing tactics.  The problem is that the costs and competition have increased so much that it's pricing out the small guys.  Companies have been cutting budgets across the board.  As you may or probably not know, marketing budgets usually get slashed first.

Thu, 10/18/2012 - 14:29 | 2901996 seek
seek's picture

Yep, I've helped a couple friends launch small businesses, and depending on the niche, google ads is far and away the second-most effective advertising (word of mouth being #1). However, it's gotten a lot more competitive so the ROI is declining, and the economy is in the toilet so the money isn't there the way it used to be. Google's issue is economy-driven market saturation, there simply are too many businesses chasing too few customers.

Note in some segments the ROI is terrible, the cost per click to get a first-page ad placement for mortgage refi's is truly insane.

Thu, 10/18/2012 - 14:42 | 2902041 holdingontomypants
holdingontomypants's picture

I advertised with them from 2005 to 2008 but dropped them 4th quarter 2008 as I couldn't afford the average $2,500-$3,000 monthly cost when the sheeet hit the fan with my clients. I lost 65% of my business volume by the end of the 1st quarter 2009 and I haven't recovered any of that loss. Been stagnant ever since. Half of the clicks I got were from job seekers which was not what I wanted but there was no way to eliminate that due to the type of service business I am.

Thu, 10/18/2012 - 16:11 | 2902367 Bob
Bob's picture

Ah, the story behind the story.  Too bad you're not in the temp placement biz.  But even that has only a couple more good years, imo. 

Thu, 10/18/2012 - 13:59 | 2901849 adr
adr's picture

If Google's draft numbers were this bad before a probable last minute accounting fudge, imagine what the draft numbers for Apple are.

The first papers that go to CFO's desks must be 180 degrees away from the eventual public release.

Someone right now is figuring out how to add another 20% to Apple's top line. Probably estimating 100 million iPad minis sold to put on the books now before it is even unveiled.

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