Thursday, July 19, 2007

Google-icious no more?

Google shares are plummeting in after-hours trading. Maybe you can guess why.

a. Profits are up 28 percent

b. Net income increased to $925 million

c. Gross revenue is up 58 percent to $3.87 billion

d. Second-quarter net income dropped from Q1's $1 billion

The answer, of course, is D. Google announced after the bell that net income is up to $2.93 per diluted share. The street expected $3.01.

The stock closed today at $548 and is now trading after hours at $518. Is GOOG a steal at this price? Only the brave will venture into these waters.

Disclaimer: Pupule Paul has no position in GOOG.

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