By the way people are asking chatgpt or copilot what they used to Google. Not everything but a lot. I most certainly do and I think I'm not alone.
https://www.bloomberg.com/news/articles/2024-01-18/microsoft...
I know for sure some people who use chatgpt in place of Google search like students or people needing translations.
Right, they got $300 million less than expected.
Which means they only got 99.544072948% of what the analysts expected.
That means they missed analyst expectations by 0.455927052%.
Not for total Revenue. Not for EPS. Not for net income. Not for diluted EPS. For the one category, Ad Revenue.
Resulting in a 6% after-market drop.
0.455927052% miss. 6% drop.
I think it's entirely possible that people focus too much on short term metrics and not enough on long-term growth.
The company gives guidance, so the estimates are not pulled out of thin air. Google should know their ad business very well at this point.
People selling after an ad miss is medium/long term thinking. They could be wrong, but was the miss caused by a wider economic slowdown (see UPS earnings) or was it Google specific? Either way, it could be sign of Google slowing down or the economy as whole.
That's not true, and hasn't been for a decade. For this earnings release, the proportion of revenue from ads was 76%.
> The company gives guidance
No, they don't. As far as I know they've literally never given guidance.
Also, if you only consider the search revenue you'll err in the opposite direction. It's 55% of their revenue, so pretty soon not even a normal majority. You should look at the "Google Advertising" line.
If you truly believe Google releases guidance, how about you just find a quote for what that supposed guidance was for Q4? You won't find it, because Google does not release guidance. The GP just made it up, just like they made up the numbers.