August 29, 2007 at 14:07Google CFO fired after stocks drop 11%
Google announced the resignation of CFO George Reyes and the search for a new candidate in his place. Apparently, the dismissal is due to the fact that the current CFO could not ensure the fulfillment of the planned financial indicators. Nobody officially talks about the dismissal: he will work until the end of the year until he finds a successor, and then leaves on his own.
Last quarter, ad revenue grew 28% from the same quarter last year. Earnings amounted to $ 925 million, that is, $ 3.56 per share, which was below the forecast of $ 3.59 per share. This microscopic difference, however, caused a real collapse: Google shares fell from $ 555 (July 17) to $ 491 (August 16), that is, 11.5% per month.
The market is used to the fact that Google is constantly exceeding the forecast, so it painfully punishes her for the slightest weakness. Perhaps the stock price is overvalued and soon we will see a serious decline in quotations.
Since George Reyes helped put the company on the stock exchange in 2004, its shares have grown by more than 360%, making Google one of the most expensive corporations on the planet. In each quarter, Google showed double-digit growth in revenue. George Reyes, 53, has been with the company since 2002.
Last quarter, ad revenue grew 28% from the same quarter last year. Earnings amounted to $ 925 million, that is, $ 3.56 per share, which was below the forecast of $ 3.59 per share. This microscopic difference, however, caused a real collapse: Google shares fell from $ 555 (July 17) to $ 491 (August 16), that is, 11.5% per month.
The market is used to the fact that Google is constantly exceeding the forecast, so it painfully punishes her for the slightest weakness. Perhaps the stock price is overvalued and soon we will see a serious decline in quotations.
Since George Reyes helped put the company on the stock exchange in 2004, its shares have grown by more than 360%, making Google one of the most expensive corporations on the planet. In each quarter, Google showed double-digit growth in revenue. George Reyes, 53, has been with the company since 2002.