A Question About Google

Google reported last night. Revenues were in line with expectations, earnings per share and cash flow were disappointing. Most of the earnings miss was related to lowered net interest income so that's not the end of the world.

Here's my question. Does Google care about quarterly results?

They don't give quarterly guidance. They certainly don't manage quarterly spending as if they care about earnings. I don't mean this to be critical. One of the worst things a company can do is make short-term mistakes for the sake of "making" a quarter. Google has had a long-term plan as far as I can tell and it has stayed on the top of its to-do list.

Despite the fact that Google continues to spend like a drunken sailor, both opex and capex, things are fine. The franchise is thriving and until there's a game-changing shift in the internet advertising market, they have won.

I wouldn't sell the stock today, especially down 10%+. If they aren't focused on quarterly results, maybe we shouldn't be either.