{"id":21,"date":"2006-01-31T20:31:10","date_gmt":"2006-02-01T04:31:10","guid":{"rendered":"http:\/\/www.awadallah.com\/blog\/2006\/01\/31\/google-missed-i-told-you-so\/"},"modified":"2006-01-31T20:31:10","modified_gmt":"2006-02-01T04:31:10","slug":"google-missed-i-told-you-so","status":"publish","type":"post","link":"https:\/\/www.awadallah.com\/blog\/google-missed-i-told-you-so\/","title":{"rendered":"Google Missed: I told you so :)"},"content":{"rendered":"

First, I was pleasantly surprised to see that CNN Money quoted and linked to my blog (just a few hours before my prediction came true, I made this prediction about more than 2 weeks ago):<\/p>\n

“Rival trashes Google’s growth prospects<\/a>”<\/p>\n

However, I was very upset by the wording they used in that title. My blog represents my personal views and do not reflect those of Yahoo what so ever, also I did not trash<\/em> Google. Its misquotes like this that cause bloggers major problems and could potentially lead us to stop writing, so please be careful next time.<\/p>\n

Now its time to gloat \ud83d\ude42 Google earnings are out, their sequential gross revenue growth was 22%, which did not just miss the 30% that the bulls were predicting, but also barely met the lowest of the sequential growth estimates (which was around 23%).<\/p>\n

To top it off, Google also increased and plans to increase its spending significantly. They hired 700 more folks in Q4, they doubled their sales and marketing spend (over 2004-Q4), and they said their expenses are likely to rise significantly as they invest in long term projects. So its really a double whammy from top and below.<\/p>\n

That said, 22% sequential growth for a $1919M Q4 is still very impressive<\/em>, but it missed the expectations and it certainly does not justify the $500 to $600 stock price targets that some analysts are setting. To put things in perspective, Microsoft with a marketcap of $300B did $11B in sales last quarter, that is almost double what Google made for the whole year<\/em>, so how can Google get a marketcap of $150B (at $500 price target). I think Greenspan had a word for this, let me try to remember, ah, he called it “irrational exuberance”.<\/p>\n

— amr<\/p>\n

<\/font><\/p>\n","protected":false},"excerpt":{"rendered":"

First, I was pleasantly surprised to see that CNN Money quoted and linked to my blog (just a few hours before my prediction came true, I made this prediction about more than 2 weeks ago): “Rival trashes Google’s growth prospects” However, I was very upset by the wording they used in that title. My blog […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-21","post","type-post","status-publish","format-standard","hentry","category-work"],"_links":{"self":[{"href":"https:\/\/www.awadallah.com\/blog\/wp-json\/wp\/v2\/posts\/21","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.awadallah.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.awadallah.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.awadallah.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.awadallah.com\/blog\/wp-json\/wp\/v2\/comments?post=21"}],"version-history":[{"count":0,"href":"https:\/\/www.awadallah.com\/blog\/wp-json\/wp\/v2\/posts\/21\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.awadallah.com\/blog\/wp-json\/wp\/v2\/media?parent=21"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.awadallah.com\/blog\/wp-json\/wp\/v2\/categories?post=21"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.awadallah.com\/blog\/wp-json\/wp\/v2\/tags?post=21"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}