Billions wiped off google share price....

[oc+]

Interesting read for most here I imagine.....

http://www.telegraph.co.uk/finance/9...er-fiasco.html

[baldidiot]

Dang son!

[TheGooner]

Its average income per click fell 15pc over the three months to the end of September, sparking fears that it is losing traction with advertisers and failing to monetise internet usage on mobiles as efficiently as it has done on traditional personal computers.

When was the last time you clicked on a paid Google ad?

[p.arena]

The announcement was scheduled for publication after markets closed in New York, but they were accidentally published four hours early.

The mistake sent Google’s share price plummeting – before their trading was suspended, more than 9pc down at $687.30 – amid fears that the stock would crash.

If the publication was supposed to be the following day, wouldn't that just delay the inevitable?

It's not like the yearly earnings would have jumped by 20% overnight.

Still, I bet that guy got told off the next day

[Caruso]

When was the last time you clicked on a paid Google ad?

I never understood it myself, but people must click the non-organic results, for whatever reason.

[FictionNet]

If the publication was supposed to be the following day, wouldn't that just delay the inevitable?

I'm not very clued up with stocks n shares... but that's exactly what I've been wondering. Can someone explain why it was such a big deal to release the info a few hours too early?

[Marit VS]

I never understood it myself, but people must click the non-organic results, for whatever reason.

Sometimes, if the organic result doesn't give me anything interesting in the first page, then paid for advertising certainly comes into play - better than trawling through pages and pages of results.

I think this is fear-mongering, Google will continue to do well with the paid for advertising, even if they have to change the formatting in the long run.

[Anthony]

Google’s stock fell $68.19, or nine per cent, to $687.30 before trading was halted to give shareholders a chance to digest the news amid fears of a massive crash.

So would trading stop for any company that had a bad report, for investors to "digest" or was that special because it was Google?

[baldidiot]

Googles not special - it can happen with any company if it looks like there's going to be a run.

[universal4]

If the publication was supposed to be the following day, wouldn't that just delay the inevitable?

It has more to do with the story hitting while the market was open.

Rick
Universal4

[TheGooner]

I'm not very clued up with stocks n shares... but that's exactly what I've been wondering. Can someone explain why it was such a big deal to release the info a few hours too early?

Typically, when news is bad - the results are announced after the exchange has closed, and the announcement comes with a whole lot of explanation (and PR spin) about how it is a one-off and how the company will do better next quarter

In this case - there was no supporting information - all investors had to go on was the fact that Google missed it's profits by 20%. That caused an immediate negative reaction.

But still - the share should recover a bit as people get follow up information.

[TheGooner]

So would trading stop for any company that had a bad report, for investors to "digest" or was that special because it was Google?

With the advent of computerised trading programs - a whole lot of breaks were set up to handle and attempt to prevent panic automated selling that may not be intended.

Whenever a stock, share or whole exchange index drops by a set number (10% for stocks, 5% for index I think) then trading in that security is halted for a set period of time - in the NASDAQ it is 20 minutes I think.

[p.arena]

Typically, when news is bad - the results are announced after the exchange has closed, and the announcement comes with a whole lot of explanation (and PR spin) about how it is a one-off and how the company will do better next quarter

In this case - there was no supporting information - all investors had to go on was the fact that Google missed it's profits by 20%. That caused an immediate negative reaction.

But still - the share should recover a bit as people get follow up information.

That makes sense, thanks for the explanation.