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The forecast is not made in a vacuum. In fact, Google's management has a lot of input into the process through guidance. I understand that there is no explicit
by dkokelley 13y ago
The forecast is not made in a vacuum. In fact, Google's management has a lot of input into the process through guidance. I understand that there is no explicit agreement from Google to hit the forecasted numbers, but from another perspective, the shareholders have put out goals, and Google missed them.
It's analogous to a salesman failing to meet his or her sales goals. You don't (typically) say that the sales manager missed the sales estimate. On the other hand, if the sales manager (or in this case the analyst and shareholders) DOES give Google an unreasonable goal, you have the option to bet against the poor analysis.
- nostrademons 13y agoGoogle's letter to shareholders when they went public said that they would never give earnings guidance. Has that policy changed? Edit: Various articles have suggested not: http://www.marketwatch.com/story/google-investors-pay-the-price-of-no-guidance-2012-01-19 http://www.marketwatch.com/story/google-investors-pay-the-pr... http://www.mckinsey.com/insights/corporate_finance/the_misguided_practice_of_earnings_guidance http://www.mckinsey.com/insights/corporate_finance/the_misgu...
- waterlesscloud 13y agoWell then they can only blame themselves if analysts have incorrect expectations.