Google shares ramped up about 80 points on Thursday after the close of the market when their earnings were announced. Putting blind faith in Wall Street earnings estimates takes a leap of faith, just ask any stockbroker worth his commissions who gets his clients "killed" on analysts calls.
Analysts frequently get it wrong, they aren't paid to be right, something we all agree on is how they get paid on how much they are right and how much commission flow is generated by their calls or how much fee revenue is generated because of their research coverage that drums up investment banking fees. An illustration of this is clear in Google's earnings that beat estimates on Thursday. Most analysts on the stock had issued negative outlooks, citing the economy and slowing paid clicks as reasons for reducing estimates and price targets.
Parisian Family Office, Founder & CEO. Started Wall Street, '82. Drexel Burnham alum in LaJolla, CA. Founded Native American Advisors, Chippewa Partners. '95. Chippewa. Conservative. Raised on reservations. Was NYSE/FINRA arbitrator. Trading O'Neil/CANSLIM methodology at PAMELOT, TN farm, GHOST RANCH, MT, on the Yellowstone River, or CASA TULE', their winter camp in Los Cabos, Mexico. Will always be, a relentless optimist with radical gratitude.
Parisian Family Office, Founder & CEO. Started Wall Street, '82. Drexel Burnham alum in LaJolla, CA. Founded Native American Advisors, Chippewa Partners. '95. Chippewa. Conservative. Raised on reservations. Was NYSE/FINRA arbitrator. Trading O'Neil/CANSLIM methodology at PAMELOT, TN farm, GHOST RANCH, MT, on the Yellowstone River, or CASA TULE', their winter camp in Los Cabos, Mexico. Will always be, a relentless optimist with radical gratitude.
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