Wall Street analysts always read the tea leaves to come up with predictions of how a company will perform each quarter. If said company does better, investors are happy. If it does worse, investors are angry. The financial system is really based on our primal urges. Today, investors are very happy with Google. The company that spawned Android announced Q3 earnings last night that beat expectations, and the markets are going wild – Google stock is currently trading over $1000 per share.
Analysts were predicting $14.80 billion in revenue for the third quarter, but Google announced $14.98 billion last night. After coming in below expectations for the last two quarters, investors were in a celebratory mood. The stock shot upward in after-hours trading and has continued that rise this morning, now up over 12%.
The acquisition of Motorola Mobility has been a drag on Google's bottom line since the deal was closed, but investors seem happy to overlook that today. Google stock is still fluctuating, but even if it closes below the magical $1k mark, they're probably dancing in Mountain View today.