$GOOGL’s “Earnings Miss”: Same Company, Different Job
$GOOGL dropped more than 10% on an “earnings miss.” The quotation marks are doing a lot of work there.
Look at What Actually Missed
Half the miss was the $SPCX stock price, not the $GOOGL business. A mark on an investment. Not a customer leaving, not a product failing.
Meanwhile, the business:
- Revenue up 25%.
- Cloud up 103% to $30.7B, with record margins.
- Search queries growing at a five-year high.
So much for “AI is killing search.”
💡 The Real Story
Ads grew 12% instead of 17%, and capex goes up again in 2027.
That’s it. That’s the scandal.
Translation
The market just repriced Google from an ad company that prints cash into an AI company that spends it.
Same company. Different job. 😎
Those two jobs get different multiples, at least until the spending shows up as revenue. And with cloud doubling at record margins, that part is already showing up.
Someone Is Betting Heavily
The day after, the options tape showed HEAVY betting on $GOOGL: traders selling in-the-money puts. Either they end up getting put shares at a price higher than today’s, or $GOOGL is higher by expiration. Sellers of in-the-money puts are not exactly hiding their view. 👀
Not financial advice. Do your own research.
Originally posted on X by Rosanna Prestia, MBA (@RosannaInvests): https://x.com/RosannaInvests/status/2115806984993955942
Originally posted on X by Rosanna Prestia, MBA (@RosannaInvests): https://x.com/RosannaInvests/status/2116183569475473876
