Apple, Google and Amazon have all posted their financial results over the last 24 hours or so.
Apple produced one of its best quarters yet it’s stock went down 8%, due to analysts not being happy.
Google missed its earnings substantially due to losses at Motorola but it’s shares rose 9%, due to happy analysts.
Amazon also produced a good result despite market conditions but missed a few parameters, so once again analysts were unhappy and it’s shares dropped 5%.
Is it me, but what do analysts know about running major companies in real life, instead of shifting pieces of paper or working computer screens.
Apple – it’s got more cash in the bank than most countries and is still making billions in profits. Not millions. Billions. And it has a captive loyal customer base.
Amazon had revenue of $25.59 billion, and earnings per share of $0.51. The company has operating income of $510 million in the period, up 26% year over year. And that wasn’t enough. So shares dropped 5%.
Google had increases in both revenue and income. For the fourth quarter, Google reported revenues of $16.86 billion, up 17 percent year-over-year. Operating income was $3.92 billion, or 23 percent of revenues. Net income rang in at $3.38 billion, up from $2.89 billion in Q4 2012. The now sold Motorola contributed a $384 million loss in Q4 2013.
These 3 companies are all performing at the top level and yet analysts seem to know better. Hmmm…