It was bad but good?

Google just reported earnings, well the market hated it. Shares were down 7%.

As we often do in Stock Market Genius, whenever the market gives a discount, we like to take a look!

Firstly, what is the market hating?

The market didn’t like the fact that Google will be spending higher capex forecast of $75B vs $58B.

Is this really that bad?

Lets look at what else was reported.

• Earnings of $2.15 vs est $2.13

• Revenue of $86.4 vs est $96.6bn

• Google Search grew 13% YoY

• Cloud grew 30% YoY

• Youtube grew from 9bn to 10.4bn YoY

• Operating Margin grew from 27% to 32%

Look at this chart and guess whether I am bearish or bullish. 😆 (clue: it is also my fav kind of meat)

And with the latest drop in share price, it is now trading at 17x for its forward earnings. Juicy!

This is NOT financial advice but this is certainly not a company that looks like its business has shrunk by 7% overnight.

This is a classic short term reaction and market manipulation at its best.

While the Wall Street will have you selling, guess who is also buying at the same time?

As the saying goes, when there is blood on the street, take a LOOK! You don’t have to buy or sell immediately but do take a look! It will do you some good!

Hopefully, you understand the game better now! If not, you know where to find me. I would love to help you level up your investing game!

Happy Hunting!

Pete
Invest with Pete

🚨‼️ By the way, I’ll never PM anyone on telegram or any other social media platforms. If you receive any “Pete” messaging you, these are scammers impersonating me. Pls beware!

The information provided in this newsletter is for informational purposes only and does not constitute financial advice. Readers should seek their own independent financial advice before making any investment decisions. Please note that while Pete is a portfolio manager, the opinions expressed in this newsletter are his own and do not represent the views of any organization. Always perform your own research and due diligence before investing.