Google Gives the Finger to the Street

Google reported its earnings today and they showed that Google is being run for the long-term and not just to please the heads on the Street. The company missed its EPS numbers by three cents - 3.56 versus estimates of 3.59.

This was due primarily to heavier spending in Operating Expense and Marketing.

The company continues to grow rapidly. Its revenue grew significantly to 2.72 billion which easily beat the Street's projections. The growth in revenue is key. It shows that Google continues to expand into other markets and overseas. It's easy to cut expenses to meet the Street's numbers but Google has clearly decided to take the hit from the market instead of sacrificing its growth opportunities. That seems smart to me.

In the short-term Google's stock may suffer but the company is growing quickly and long-term I think Google's stock will continue to appreciate as the company grows.