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Google Inc. Message Board

  • metallicvessel metallicvessel Apr 21, 2008 10:41 AM Flag

    Do you understand what is on GOOG's balance sheet?

    Do you understand what an "accounts receivable" number means? Receivables represent "product" that the company has sold, but hasn't been paid for yet. The company adds its receivables to its earnings, even though it actually hasn't received any payment.

    Do you understand why Google's $400 million rise in receivables from the last quarter is extremely questionable?

    Google does NOT "ship product" then wait for payment; most of its billing (especially its overseas accounts) is paid for at the same time someone clicks on one of its customer's ads.

    GOOG's receivables should be exceedingly small considering the nature of its business and structure of its billing systems.

    The current number -- especially the $400 million jump this last quarter -- is screaming "ACCOUNTING FRAUD!"

    The jump in receivables, along with the $200 million "bonus" GOOG received because of fluctuations of exchange rates, more than makes up GOOG's reported "growth" for the quarter.

    Companies commonly "cook their books" using receivables as a "slush fund" -- they book revenue they really haven't earned yet, or extend credit recklessly to customers (resulting in an explosion in receivables) in order to meet certain "targeted" earnings numbers.

    GOOG's receivables now stands at $2.56 BILLION!

    This is $2.56 billion that Google has reported as "earnings" but hasn't actually been paid for yet.

    So the question is, who exactly owes Google $2.56 billion, and when are they going to pay it, if ever?


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    • You have given people a dose of reality that has some terrified and doubtful and that they do not desire to hear. A newsletter I subscribe to say the American sheeple are being set up for the greatest financial slaughter in history which will affect pension funds, insurance cos. Banks are already on life support from the FED. Longs in GOOG should take the money and run. I have 1/09 LEAP puts and even with time decay I will cash them in around 8 or 9/08 with 3-figure percent profit. This is madness.

    • coffee stains. This is a House of Cards- all low cards- just a hack ad agency.

    • Google has gone from $10 billion in revenues in 2006 to over $20 billion in revenues this year. An additional $400 million in accounts receivable is not alarming at all.

      • 1 Reply to alrifr
      • "alrifr" posted:
        >>>Google has gone from $10 billion in revenues in 2006 to over $20 billion in revenues this year. An additional $400 million in accounts receivable is not alarming at all.<<<

        The $400 million in receivables is the jump for JUST the 1st quarter of 2008.

        Google's receivables now stand at over $2.5 BILLION!

        If you study the company's billing system, both what the company publishes and by talking with advertisers, you learn that most advertisers do NOT have terms with Google.

        Most advertisers never owe Google more than $500 at any point in time.
        Google has, by most estimates, between 100,000 and 200,000 active advertisers -- that would equate to approximately $50 million to $100 million in receivables.

        A few especially large advertisers might contribute a few hundred million to the receivables, but I still cannot find any way that Google's receivables could reach to BILLIONS.

        So the question arises, exactly WHO owes Google the $2.5 billion Google is showing as receivables?

        Start researching Google's customers; can you find where this receivables number is coming from?


    • postman960 Apr 27, 2008 1:15 AM Flag

      Call Eric Schmidt... maybe he will explain it to you... This is just a finance board... pure entertainment!

      • 1 Reply to postman960
      • Maybe you see boards such as this one as "pure entertainment," but others use them to learn things about companies/stocks that are not necessarily available from the mainstream news sources.

        You have to filter through a lot of the "trash" posted, but if you know what to look for, you can learn things -- the boards can be especially useful in determining "sentiment" surrounding a stock.


    • Isn't it interesting the way people like "KIMI1234" "mutasian" "mo2356" "scilentpart..." and others will take "pot shots" with their posts claiming that my comments are "all wrong," but then when I reply to their comments -- pointing out the errors they are making in their reasoning (if they actually made any "reasoned" comments), the conversation suddenly goes silent?

      I'll bet they'll be just as silent when Google's accounting "tricks" have been fully exposed and the stock tanks in response to the exposed deception!

      The "growth story" at Google appears to be DEAD; it is looking to be mostly accounting "trickery" that it fooling investors who do not understand what to look for on the company's books.


      • 2 Replies to metallicvessel
      • don't you know nobody cares about your lies. You lost money on your PUTS that is fact. Account reveivables are common for all businesses. Do you know how many accounts they consist of? What is the average owed per account? How often payments are made per account? How GOOG collects money for their service per account? Are you a user of GOOG ad words? I am and I know how they bill me? Are you a user? Shut up and make yourself some lemonade with them PUTS you got.

      • I agree. However, it is not ONLY GOOG, this is going around in many growth stocks. Everyone who has voice, that can be heard (media, analysts, etc..), is ordered to turn a blind eye and keep silent. There is a lot of corruption in the market as of late but everyone except retail investor is involved.

        The stakes are very high and thus the level of corruption and manipulation

    • Perception doesn't always equal reality. Never fight the tape. Forward estimates make GOOG worht $675.

      Analyst's Notes
      Analysis by Robert K. Becker, CFA, April 21, 2008
      • We are maintaining our BUY rating Google Inc. and raising our 12-month target price to $675 from
      $660, as the company's business continues to perform well despite a sluggish U.S. economy.
      • We believe that Google's relentless innovation will outweigh the impact of the current economic
      downturn. We also expect the company to benefit from its recently completed acquisition of
      • We are raising our 2008 earnings estimate to $19.86 per share from $19.60, and our 2009 estimate
      to $24.78 per share from $24.74.
      • Our financial strength rating for Google is High, the top of our five-point scale.

      • 1 Reply to anythingonceor
      • "Forward estimates make GOOG worht $675."

        It is good to "look forward" when making investment decisions, but relying too much on "forward estimates" can create a situation where investors are "counting their chickens before they hatch."

        Evaluating the current data, looking for any potential problems (like that seen in GOOG's accounts receivables growth) is vitally important when making investment decisions.


    • Google has been sued over Adwords scams.

      This may be another sign that the company is trying to cook the book besides the account receivable issue. I guess Google is really facing the pressure to beat the numbers. Any thought?

      But I am quite surprised it seems no one is paying enough attention to this piece of news.

      • 2 Replies to jimmylau11
      • "jimmylau11" posted:
        >>>Google has been sued over Adwords scams.

        This may be another sign that the company is trying to cook the book besides the account receivable issue. I guess Google is really facing the pressure to beat the numbers. Any thought?

        But I am quite surprised it seems no one is paying enough attention to this piece of news.<<<


        I would agree that the "games" Google plays to take its customers' money are usually related to attempts to raise revenue to meet or beat the estimates Wall Street has made about its numbers. (The insiders still have a lot more stock they want to sell; they don't want the stock price to drop too low!)

        The lawsuit from advertisers over Google's deception is not surprising.

        Advertisers and SEO (Search Engine Optimization) experts using Google have been talking about the type of deception in the lawsuit for years.

        Here is one SEO who has blogged about it in the past (and he's a huge "fan" of Google). These comments are from last year (I posted this link last year):

        Google is now allowing advertisers to "opt out" of the typo-squatting and parked-domain sites, but is still extremely deceptive in explaining to its advertisers how these "junk sites" are part of the "Google search network" (as opposed to being part of the third-party "content network" -- which is what these junk sites are really more representative of).


      • I owe Google $5 for my Adwords account, so that explains some of the 2.6 billion.

    • Worked well last quarter and will again next quarter. As long as they maintain consistency therr is no need to worry.

      r/DL On to $675

    • Account Receivable is not likely to be inflated since audit track that very seriously. However, I do believe Google's profit at this quarter does not show its business has grown, because the profit is mainly come from its recent cutting of jobs.

    • interesting

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