Two super companies reported earnings this afternoon, both with a heavy burden to outperform. One did, one did not. Intuitive Surgical, Inc. (NASDAQ: ISRG) after the market close announced $189.4 Million Fourth Quarter Revenue, Up 68 while reporting earnings of $1.24 per share besting analysts expectations of $1.04 by 19%. In after hours trading it is up $36 per share as I peck away on the keyboard, up to $289 after already rising $19.00 during the trading day. My last post on the subject was Chasing Value: Intuitive Surgical drops 12% today.
Google, Inc. (NASDAQ: GOOG) on the other hand, while reporting positive growth, fell short of analysts expectations by 2% and you know what that means: a reversal of fortune and headlines like Google Shares Plunge After Earnings Miss. The Stock closed the day up $16.03 to $564.30 only to take a dive in after hours trading almost $40 per share. Tomorrow will be another day and those wiser than I can dissect the company report further, along with market sentiment. However, Google has been down with the market all month long and there is enough fear in the market to prevent any notable stock recovery this year, unless the perception of internet advertising shifts again.
Sheldon Liber is the CEO of a small private investment company and the design and research principal for an architecture & planning firm. He owns shares of ISRG. To find potential opportunities and verify my track record read Chasing Value or Serious Money.
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Reader Comments (Page 1 of 1)
1-31-2008 @ 7:49PM
George Linder said...
Google is making huge investments for the future,
which will pay off, such as mobile device advertising
and video ads. Great long term bet if you think as an investor rather than a trader. Although volatility is a traders dream.
1-31-2008 @ 8:44PM
Sheldon L said...
I have no chrytsal ball George and appreciate your comments. However, AOL, Yahoo, Ebay, and many others (most out of business) have made huge investments for the future too. Sometimes they pay off and sometimes they do not. At least for now nothing is really paying off.