Man oh man how I love watching tech and news sites blow everything out of proportion! If you haven’t heard by now, Google stock plummeted almost 9% after their quarterly earnings were accidentally leaked early. Since then, tech and news sites are preaching about the “devastating blow for Android”, and “Apple’s attack starting to hurt”, and how Android is “bad business for Google” blah blah blah neener neener neener. Look guys...I’m no stock analyst, but I’ll tell you one thing right now: Don’t be overly concerned about Google’s bank account taking a hit at this point in time. Instead, be HAPPY that it's happening now, and here’s exactly why.
Remember one thing before I continue: Google just very recently surpassed Microsoft to become the 2nd most valuable tech company in the world, and just a few weeks ago, their stocks hit their all time HIGH. Yes, Google stock went down almost 9%...yes, their net revenue fell from 11.83 billion to 11.33 billion...yes the $9.03 per share was short of the predicted $10.65 earnings per share...and yes, net income went from 2.73 to 2.18 billion. Lastly, yes, click advertisements, while increasing 33% this year, suffered a click per clilck loss when compared to last year. Yes, Google is aware of it, and yes, they naturally need to watch out. Now that this is out of the way, let’s get down to why it doesn’t freaking matter as much as these doomsday sites are prophesying.
Tech sites and news sites are saying that Google’s core business took a hit this quarter. That’s fair enough. But they are also saying that their mobile sector is the main culprit. Others are blaming Motorola for being the issue. Remember, Google spent 12.5 BILLION dollars on Motorola this year, and have now started MAJOR restructuring. In other words, Motorola is costing them a LOT of freakin money right now. So how is this a good thing?
Well, to all you tech sites out there preaching Google’s and Android’s doom, I ask one question: What did you expect to happen? Did you think that after buying Motorola that Google would just sprinkle some GOOG juice on them and that they would then start magically growing money trees? Motorola was doing BAD when Google bought them, which is probably why they agreed to a buyout in the first place (duh?).
Google is now losing money partly because they are spending tons of money to whip Motorola’s lazy butt into shape, and believe me...that will take a lot of time, and a lot of money. They also inherit Motorola's debt too, so don't think this purchase is all double rainbows and flowers. Google however, it already starting that needed restructing, and I could care less if their stock fell 9% due to them investing tons of cash in Moto if that's what it takes to get them producing the best Android phones ever made. Of COURSE this will cost money, and of COURSE Google will have to take a hit. But until you see another search engine making massive gains where Google is losing, all these news sites should seriously stop blowing this out of proportion. My God...they act like Google is Facebook, and literally has close to no freakin way of generating revenue.
So be happy stocks have fell a bit, be happy that Motorola is costing Google an arm and a leg, and be happy the GOOG is investing huge amounts of money to get Moto in shape and ready for battle...because that financial investment and some of those losses they are taking might just put them in a position to stick it to Apple and Microsoft harder than they have ever done before.
So whip em into shape Google, and bring on that Googlerola Nexus line.
Picture credits: www.swapmeetdave.com