Oct 19, 2012 Motley Fool Money radio show | Summary and Q&A

TL;DR

Google's quarterly earnings were lower than expected due to foreign exchange rate changes, but overall the quarter was strong with increased clicks and a successful Google Plus platform.

Key Insights

• 💱 Google's quarterly earnings were lower than expected due to foreign exchange rate changes, but the underlying business remains strong.
• 😘 The decline in cost per click was largely due to the shift towards mobile devices, which have lower monetization rates compared to desktop.
• 👤 Google Plus has achieved significant user registration and is considered a success in terms of increasing engagement with the Google ecosystem.
• 🍉 Despite the temporary dip in stock price, Google's long-term prospects, particularly in mobile and advertising, remain positive.
• ❓ The market reaction to Google's earnings suggests that investors may not always accurately value a company's performance.
• 🤩 The decline in stock price could present a buying opportunity as the company continues to see growth in key areas.
• 🚗 Analysts are optimistic about Google's ability to capitalize on the mobile advertising market, as well as its potential for further expansion in other areas.

Transcript

welcome to mle full money thanks for being here I'm your host Chris Hill and joining me in studio this week from mle Full inside value Joe Meer from mle Full income investor James early and from million-dollar portfolio Ron gross gentlemen good to see you you CH earnings pooa rolls on we've got the latest results from Microsoft McDonald's and more ... Read More

Questions & Answers

Q: Why did Google's quarterly earnings come in lower than expected?

The main reason for the lower earnings was the impact of foreign exchange rate changes on revenue. This is a short-term issue that does not reflect the underlying strength of the business.

Q: What were analysts most concerned about in Google's quarterly earnings?

Analysts were focused on the decline in cost per click, which fell 15%. However, after factoring in currency changes and considering the 33% increase in clicks, the decline was only 8%.

Q: Is Google's stock still a good investment despite the lower earnings?

Many analysts believe that Google's stock is still attractive, especially considering the growth in the mobile business and the success of Google Plus. The current dip in stock price may present a buying opportunity.

Q: What other factors contributed to the decline in Google's stock price?

The decline in stock price was also influenced by the accidental release of the earnings results and the overall market sentiment towards tech stocks.

Summary & Key Takeaways

• Google's quarterly earnings were lower than expected, primarily due to foreign exchange rate changes.

• Analysts were disappointed by the missed revenue guidance, but it was largely attributed to short-term currency fluctuations.

• The company saw a 33% increase in clicks and continued success with Google Plus, which has over 400 million registered users.