Data generated from ComScore (SCOR) over the past quarter led investors to believe that ad-clicks for Google (GOOG) were weak. The GOOG shorts/bears were using the SCOR data as fuel for sending GOOG shares lower this whole year. All that changed yesterday after the close when GOOG reported stronger advertising revenues that helped to generate EPS of $4.84 versus analysts’ consensus estimates of $4.52. EPS grew at a rate of 31.5% versus the same period last year.
GOOG shareholders got some sweet revenge in after hours trading subsequent to the company's earnings report and conference call. GOOG shares were trading about 17% higher in after hours’ activity while shares of SCOR dropped just over 8%.
The morale of the story for students and investors is to never believe single data points when they are touted by companies with self-serving agendas. Examples of such companies are SCOR and ADP (ADP), the latter of which produces its own monthly labor estimates that have a lousy track record. In addition, ignore data points which a group of traders who are motivated for profit ram down your throats like some sort of new gospel in an attempt to create fear and panic as a means to manipulate stock prices.
At the time of this Blog entry Scott Rothbort, his family and or clients of LakeView Asset Management, LLC were long shares of GOOG and short shares of ADP --- although positions can change at any time.
Posted By Scott Rothbort at April 18, 2008