Stocks like Apple (AAPL), Google (GOOG), McDonald’s (MCD) haven’t really been hit too much yet. But they will. They’ll be the last to go. But when they go, they’ll go hard.
– “The Big, Popular, Growth Stocks Will Get Hit Last”, Top Gun FP, Friday January 11th
The leading stock of this bull market, the darling of all bulls everywhere, Google (GOOG), reported earnings after the close today – and is getting crushed.
Google is pretty much synonymous with this bull market. If its run is over, then this old bull is surely dead. Say Goodnight.
When I wrote the above on Friday January 11th after the market closed here’s where Apple and Google were trading:
And here’s where they’re trading now:
AAPL $135.36 – down 21.6% in less than 3 weeks
GOOG $521 (in the after hours) – down 18.4% in less than 3 weeks
Google reported EPS not including stock options expense of $4.43 while analysts were looking for $4.45. Revenue after traffic acquisition costs (what they share with their partner websites) was $3.39 billion while analysts were looking for $3.45 billion (GOOG 4Q Earnings Release).
Google shares are off about 7.5% in the after hours to the low $520s.
Google missed. Google DOESN’T miss. The tide has clearly turned.