I own Google. If you do too, we've got a nightmare on our hands.
Somebody screwed up and released earnings early, about an hour ago. And that's not the worst of it. The nightmare part is that Google missed 3Q earnings by an inconceivable 19%.
Shares crashed $70 to $685 (- 9%), and now trading's been suspended.
If I were younger, I might be tempted to view that price as a buying opportunity on the grounds that its timing was unexpected, so maybe the market makers weren't prepared to slow the shock.
But I'm not so young anymore, and all my mind wants to focus on is the annoyingly expensive dollar loss caused by the 9% plummet and whether that 9% might not just be the beginning of the Google beating today/tomorrow.
Peregrine, did you play the "unprepared market makers so probably exaggerated price movement" angle during the trading halt?
Between the trading resumption and now, losses got pared from $686 to $700, a little better than 2% gain. Not terrible for a 3 hour hold.
Today's technology is awe inspiring. Because it was released early, the Google ER had a line in it that said "Pending Larry Quote", meaning it was waiting for a quote from CEO Larry Paige.
That line instantly went viral, and Twitter accounts for @PendingLarry and @PendingLarryQuote instantly went active.
If you want to check it out, some of the quotes are pretty funny. I can't reprint the best ones here because Yahoo's censors would zap them.
@Hmmm, sorry to hear the bad news for you. Actually, a few weeks ago, I noticed GOOG advanced so much in the last three months, pushing its PE beyond 20. I thought it is good point to sell. For Tech giants, a high double digit PE is typically just too high. Especially, I am aware that the searching ad model has many downside lately because of the new online ad models.
No worries, I've been through more than my share of missed ER's.
Isn't this the kind of play tempting to people your age? Did the options market close? If not, did it properly adjust? Is 9% a greater drop than will ultimately be the result when the market makers put the brakes on? If y, then even a properly adjusted options market can be traded.