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  1. #1
    Specialist Member RCox's Avatar

    Motorola Effect Could Weigh on Tuesday's Google Earnings !!!

    Motorola Effect Could Weigh on Tuesday's Google Earnings

    One of this week’s main market headlines will be generated by Google's fourth quarter earnings earnings report, which will be made available at the end of the Tuesday trading session. This report will be viewed as highly important for markets because of several key factors: Google has recently discontinued some of its businesses, major restructuring efforts seen at Motorola, cost per click numbers, and Google’s place in the health broader economy.

    The provider of the world’s biggest search engine is expected to show a fourth quarter earnings performance of $10.52 a share, along with revenues of $12.36 billion. Recent comments from Google last week showed that analyst figures might not factor-in Motorola Home as one of the company’s discontinued businesses, and this could lead to some changes in the final number. Either way, this report will surely bring volatility to the market and for a daily trade, we can look to enter into hourly Google (GOOG) CALLS on a break above 720 (positive earnings outcome). If the release disappoints markets (given the possible inclusion of the Motorola figures), look for hourly Google (GOOG) PUTS if prices break below 680.

    Note: these strike prices might need to be adjusted into the number if we see the increased volatility (potential position squaring) before the figures are released.

  2. #2
    Senior Member Deanfx's Avatar
    That information is great RCox. How can I see the Google earnings release immediately when it is announced? Is there any source on the web where it will bi published fast and also are there any specific times when this kind of news are announced? Probably it will be out of the US trading day and the price will open next day with a gap and it won’t be tradable that way?

  3. #3
    Specialist Member RCox's Avatar
    Google's fourth-quarter earnings came in higher than analyst expectations, and this sent prices above the 720 level needed to enter into new CALL positions based on the idea that this new data would propel bullish momentum. While revenues did post a slight miss (on lower advertising rates compared to previous quarters), the headline figures were enough to push prices higher at today's open. Google's net income came in at $2.89 billion (equal to $8.62 per share), and this compares favorably to net income of $2.71 billion ($8.22 per share) that was posted in Q4 2011. Now that the market has made its initial push, we should hold off on new CALLS until prices retrace to cheaper levels.

    @DeanFX: Yahoo lets you set up an earnings calender and you can choose which companies you want to monitor. These trading recs will only involve major companies so in cases like this, the fastest way to get the info is to just have market news on at the scheduled time.

  4. #4
    Specialist Member RCox's Avatar
    First hour of today's Trading:

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  5. #5
    Rookie Member
    Hey Richard,

    Most of the earning reports came when it is not trading hours, so how we could trade the news if it there is no possibility to buy option call or put immediately after the announcement. For example the GOOG opened with gap. Yes it continues to rise in the same direction but very slowly and the risk for reversal is very big. Are there any major announcements which are received during the working hours?

  6. #6
    Veteran Member Ammeo's Avatar
    Quote Originally Posted by wallstreet View Post
    Hey Richard,

    Most of the earning reports came when it is not trading hours, so how we could trade the news if it there is no possibility to buy option call or put immediately after the announcement. For example the GOOG opened with gap. Yes it continues to rise in the same direction but very slowly and the risk for reversal is very big. Are there any major announcements which are received during the working hours?
    I think Google will take this upward run higher but slow ..Reversal may not expected currently (as i have seen after many positive news releases ,there is a breakout and then steady upward trend) ...just my personal opinion.
    Last edited by Ammeo; 01-24-2013 at 11:53 AM.

  7. #7
    Junior Member allanrock's Avatar
    I read a paper here
    and think it has a lot of sense in it. The situation now very closely follows the development of the dotcom bubble where the “bluechip” stocks with no earning reports and speculative prediction for future success go higher and the stock with strong and stable base go lower. The liquidity get thinner and thinner and the prices higher and higher and it will end someday. I couldn’t predict now when it will happen but most probably it will be soon than latter.

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