massacre in after hours

wait, YHOO beat earnings by 6 times, why is it down?

 

massacre? massacre was in the morning when GOOG was up 10 points. Really what do you expect from GOOG? 10 points up daily? Don't get me wrong. GOOG is an extremely good company and extremely overpriced.

 

Yes.

 

Well so many articles after the earnings release are saying they disappointed on Revenue and yet a few minutes ago ( 8pm est) the Wall Street Journal put out a story titled:

"Yahoo's Profit and Revenue Surge"

Go figure??

( I'm not a scubscriber so I couldn't read the article...just saw the title of it a few minutes ago)


Also 30 something cents of their earnings was due to cashing in on a investment Yahoo made..they never said what the investment was but word has it that they had invested in GOOG and took profits... (so that should be good for Yahoo shareholders ..no?)

I bought calls on Yahoo going into earnings so I'm disappointed...but will wait and see what happens tomorrow.

__________________________________________________

SUNNYVALE, Calif. – July 19, 2005 - Yahoo! Inc. (Nasdaq: YHOO) today reported results for

the second quarter ended June 30, 2005.

“Yahoo! continued to see solid growth in the second quarter as a result of our strength in both

search marketing and brand advertising, increased engagement from our large, global audience,

and our ability to execute and perform according to plan,” said Terry Semel, chairman and chief

executive officer, Yahoo!. “We have a healthy business model that we believe will enable us to

take advantage of future growth opportunities and we remain dedicated to providing our users

with the very best services on the Internet.”

Consolidated Financial Results

• Revenues were $1,253 million for the second quarter of 2005, a 51 percent increase

compared to $832 million for the same period of 2004.

o Marketing services revenue was $1,094 million for the second quarter of 2005, a

51 percent increase compared to $723 million for the same period of 2004.

o Fees revenue was $159 million for the second quarter of 2005, a 45 percent

increase compared to $109 million for the same period of 2004.

• Revenues excluding traffic acquisition costs (“TAC”) were $875 million for the second

quarter of 2005, a 44 percent increase compared to $609 million for the same period of

2004.

• Gross profit for the second quarter of 2005 was $767 million, a 43 percent increase

compared to $535 million for the same period of 2004.

• Operating income for the second quarter of 2005 was $261 million, a 75 percent increase

compared to $149 million for the same period of 2004.

• Operating income before depreciation and amortization for the second quarter of 2005

was $368 million, a 57 percent increase compared to $234 million for the same period of

2004.

• Cash flow from operating activities for the second quarter of 2005 was $404 million, a 62

percent increase compared to $250 million for the same period of 2004.

• Free cash flow for the second quarter of 2005 was $300 million, a 55 percent increase

compared to $194 million for the same period of 2004.

• Net income for the second quarter of 2005 was $755 million or $0.51 per diluted share

(including net income of $563 million, or $0.38 per diluted share, related to the sale of an

investment). This compares with net income of $113 million or $0.08 per diluted share

for the same period of 2004.

“We are very pleased with our second quarter results as they clearly underscore two fundamental

business model strengths: excellent growth and great balance,” said Susan Decker, chief

financial officer, Yahoo!. “We see this as a terrific combination, leading to the quarter’s strong

organic revenue growth, robust profitability, and substantial free cash flow.”

 

this guy nail it http://www.rapailleinstitute.com/articles/FM.PORTRAIT-RAPAILLE.pdf

 

These guys think that GOOG down 10 is a massacre.


lol

 

oops.

Grab This Tech Trio Before Earnings

By James J. Cramer
RealMoney.com Columnist
7/19/2005 2:21 PM EDT
Click here for more stories by James J. Cramer
Nobody's asking me to stick my neck out. Nobody's saying that I have to lay it on the line ahead of the earnings reports.

But I would be a sham if I didn't tell you what I would be doing if I were at my old hedge fund in advance of tonight's earnings.

I would, to be blunt, be huge long Intel (INTC:Nasdaq - commentary - research) and Seagate (STX:NYSE - commentary - research) and own a lot of Motorola (MOT:NYSE - commentary - research), enough so that if it went higher I wouldn't feel naked but if it pulled back, I could buy more.

And I would be building those positions right now.
It is serendipitous that three of the most important tech companies for these product cycles report tonight.

(I am not even counting Yahoo! (YHOO:Nasdaq - commentary - research), which I own, like Motorola and Intel for ActionAlertsPLUS. I believe it will be excellent, but I have more conviction about Intel and Seagate.)

And I am sticking my neck out to say that these will be wins, and that you need to own all three ahead of the quarters.

The worst that could happen?

You get to buy more lower tomorrow -- if they are lower, that is.

 

In other words the worse that could happen is they go down.

Brilliant

 

I agree, you can buy all of them tomorrow at the open and make money. stop laughing one lotters!