When a sprinter runs the race and win a gold medal despite a whole bunch of odds, but misses the commentators expectations by 1/100th of a second, who is wrong? The commentator? or the athlete? Who should get punished? Do we respect the athlete for his/her performance or based on how commentators view the whole event?
In the wall street, always, the athlete gets punished. Even when they miss, Analysts continue to sell their reports and analysis, by writing why companies did not meet their expectations. What a spin?
Does every investor in Wall Street do their own due diligence and trade stocks or do so based on TV Shows and projections from salaried Analysts that write reports. When Analysts forecasts are not met, why media always points to the company and say the company failed. Why don't they even doubt the analyst's report that report missed the projections.
Company Results: Google net income grew by 35% to $1.25.
Wall Street Reaction: Google, You missed my projections, You failed. Shares fall by almost 10%
On Friday, Google announced its results for the second quarter. Despite the falling markets and thrifty spending by many companies, Google racked up its income, an increase of 35%.
Google’s net income grew 35 percent, to $1.25 billion, or $3.92 a share, compared with $925 million, or $2.93 a share, in the second quarter of 2007. Revenue climbed 39 percent, to $5.37 billion, from $3.87 billion a year earlier.
Company: Citigroup reports $2.5B in losses
WallStreet Reaction: Citigroup, you missed my projection too. You failed. I am surprised. Shares of Citigroup rose $1.38, or about 8 percent, to $19.35
For the quarter Citigroup lost 54 cents a share, and reported write-downs of $7.2 billion on its investments. On the consumer debt front, the bank also announced $4.4 billion in net credit losses and $2.5 billion to increase credit reserves.