Dollar's plunge helped Google trick Wall Street

[ckramer]

Source: vw

Google's first-quarter revenues beat Wall Street analysts' expectations by $101 million — $3.7 billion to their average forecast of $3.59 billion. The stock is up nearly 20 percent today as a result. But that only happened with the help of a sinking dollar, Bloomberg reports. During yesterday's conference call, Google said its revenues would have been $202 million lower if foreign currency rates hadn't risen so sharply against the dollar during the first quarter. Google's actual share of foreign search queries only increased from 62 percent in December to 63 percent in February. "I don't think that kind of foreign currency benefit was expected,'' one fund manager told Bloomberg. Remind us, why do we have stock analysts to begin with?

Read more: http://valleywag.com/381455/dollars-plunge-helped-google-trick-wall-street

[ckramer]

1. Wall street is desparately wanting to rally

they (willingly?) ignore this fact.

[Zynx]

2. I was actually on the receiving end of a strong dollar back in 2000 and 2001

with my Procter and Gamble stock. They continually had to adjust earnings down for the fact the dollar kept rising. Given how volatile currency markets are, one would think the stock market would compensate with managed expectations for it, but sometimes it doesn't. A weaker dollar does mean that export earnings will be higher and if it is a permanent phenomenon, then it will have a material impact on earnings that has to be compensated for.