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

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
HelluvaEngineer's picture

VIX back to unchanged.  Everything makes perfect sense.

flacon's picture



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)...

economics9698's picture

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

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.

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

MeelionDollerBogus's picture

AnAnonymousCitizenism says this is the sound of one UST clapping

EscapeKey's picture

Argh please use next time instead of that ad page.

Wakanda's picture

Somebody wants Mittens in.

The Shootist's picture

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

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.

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.

FubarNation's picture

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

Buckaroo Banzai's picture

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

imbrbing's picture

He has to many "ELITE" friends for my taste

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'.

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.

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...

FubarNation's picture

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

blunderdog's picture

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

ParkAveFlasher's picture

Sounds like a job for Gold Sacks.

malikai's picture

Goldman said so too, with their wallets.

Non Passaran's picture

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


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

The Emperor of Google has no clothes.

If the foo shits, wear it.


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%

vast-dom's picture

this whole motherfucker is one big multifaceted glitch.

alien-IQ's picture

you won't get any argument from me on that

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.

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 order to make this world a better place...despite the fact that earnings are tearing up the whole game.

kliguy38's picture

Donally takes out Page

<iframe width="420" height="315" src="" frameborder="0" allowfullscreen></iframe>

slaughterer's picture

This does not inspire confidence in market participants whatsoever.  

GolfHatesMe's picture

Unfortunately Algos do not know the term

e-man's picture

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

gjp's picture

+1 Love Calvin and Hobbes

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.

Bob's picture

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

HelluvaEngineer's picture

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

dwdollar's picture

I only use them when they give me free promos.

NotApplicable's picture

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

flacon's picture

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

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.

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.

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.

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. 

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.