Google Inc(NASDAQ:GOOG) shares are showing relief
rally in the opening session at least after a slump of 8% in yesterday’s
session as the company’s early issued results due to a glitch, which had widely
analysts’ estimate. It would be interesting to see if the stock can hold on
with its early gain as investors are very nervous after yesterday’s lackluster
earnings.
In the third quarter, the search engine posted
EPS of $9.03 and revenue of $ $11.33 billion, both missed analysts target by significantly
with EPS fell short of $1.62 and revenue by $550 million. The key concern
during the quarter was the company’s revenue excluding Motorola, saw a growth
of below 19% for the first time after showing well above 20%’s growth rate in
the past few quarters.
Should Investors Buy GOOG After Today’s Slump? Find OutHere
Although, the volume of ads jumped by 33%, but the average
price paid by web-search advertisers to Google per click put pressure on the
company, which fell 15%.
They key concern remains that the increased use of
mobile devices may put further pressure on the company’s earnings.
Apple Inc.(NASDAQ:AAPL) continued to be under
pressure and fell 0.72% to $628.09 after plunging over 1.70% in yesterday’s
session. After the lackluster earnings by various blue chip tech companies,
investors are trading AAPL cautiously as yesterday analyst at BMO
said that the company’s earnings forecast for the current quarter could be bit
more conservative.
Moreover, the analyst reduced its iphone estimate by
4 million to 46 million, stating supply constraints. The supply shortage is not
the new problem for the company as the demand for iPhone is much larger than
supply.
Yesterday’s fall was further sparked after Verizon
(NYSE:VZ) commented that they saw supply crunch in the latest quarter. Following
this, analyst at Jefferies & Co. reduced its projections r total iPhone 5
sales unit sales in the quarter to 5 million from 8 and 10 million.
However, the key question remain can the worl’d
largest company by market value will be able to buck the trend and report
higher than estimated earnings and forecast better quarter?
The stock has already lost 10% from its peak of
$705.07 on heavy supply crunch for its iPhone 5.
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