Could It Be That No One Wants The Truth about GOOG Earnings?

Posted: July 31, 2007 in Uncategorized
For the last few weeks, all the headlines and press mentions about GOOG have centered on their supposed earnings miss.  All negative stuff.
On the day after GOOG reported, though, I blogged that I believed GOOG actually beat earnings.  I have good data to support this.  There’s also precedent since the exact same thing happened in Feb 2006.
Since that blog entry, I must have pinged a dozen journalist and analyst.
I’m getting nothing but blank stares.
Which is driving me crazy… how can this kind of mistake happen to the most important of tech bell weathers? 
It’s unfathomable.
After an email conversation today with a wickedly smart ex-journalist, I realize that I’m probably asking the wrong question.  The right question is, "why would people not want to admit the mistake?
For journalist, it’s all about a sensational headline.  The "They’ve Missed!" headlines were certainly sensational and embarrassing to backtrack on.
For analysts, well, they’re the smart money.  It’s called, "inefficiency in the market"… a buying opportunity going into next Q’s results…  GOOG at 498.88 (low in last few weeks) is cheaper than GOOG in the 600’s… where GOOG probably would have been if the headlines read, "GOOG Blows Out Earnings" again.  I don’t think it’s a coincidence that GOOG weathered last week’s market carnage like a champ.
I guess life is about asking the right questions.

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