Wednesday, January 31, 2007

GOOG Q4 Revenue Not Enough

Oh well, the EPS of $3.29 beat consensus estimates of $2.91 but the revenue growth rate was 67% to 3.21B which beat consensus estimates of 3.14B but did not surprise. In other words, the revenue estimate had to beat the high of 3.27B in order for the stock to react positively.

GOOG after hours is trading around $486.

Nice try GOOG but not this time. IV will plummet and so will Call premiums. The longs will lose and the shorters will will tomorrow I'm sure.

Since no one made a bet I assume that most did not want to venture into this trap. Wise indeed.

8 comments:

Reno said...

I purchased my 2nd option ever and was pretty happy during the day -- after hours it was was just disappointing.

Terence said...

Sorry to hear that, Reno. In the option world, you have to learn that you'll win some and you'll lose some and that there will be other opportunities.

AJ said...

OJ, are you still holding on to your June RACK calls? Earnings after hours today ...
AJ.

Terence said...

Sorry Reno. I've been a little preoccupied with another project and I have failed to update positions. I did exit my RACK position prior to earnings. Earnings surprises this season are few to none and the reaction has been typically sell the news.

Anonymous said...

Big T,

Not in the Goog play with you, but 78-79 area seems to be holding support. There is not much momentum on this push down. If it turns up from here, a break of 513 may be in the cards.

Mock

Terence said...

Thanks Mock. Cramer's calling for 450 first then up so we'll see if the oracle is right.

OptionPundit said...

Hi OJ,

Nice blog and it's my first time to visit yoursite. Keep it up and all the best.

I did play Google and cover extensively on blog starting one week prior to earnings. I played both directional and non-directional. It can be found here..

Out of 4, 3 trades were winner and 4th one is still going on...

Check out and if you think there is something your readers may benefit, feel free to share with them...

Cheers and all the best,
OptionPundit
www.OptionPundit.net

Terence said...

Thanks again, OP. Certainly will link up from time to time on plays of interest. Regards, Terence