Wednesday, October 19, 2005

Well, That Just Doesn't Make Sense

I've learned a lot about the stock market this year, but I think I have more to learn about analyst's estimates.

For instance, Google reports 3rd quarter earnings tomorrow after the market closes. I read the earnings preview, and it contains some interesting statements that had me questioning the logic of analyst predictions:

ANALYST TAKE: "We believe Google will report (third-quarter) results better than our expectations," JPMorgan said in a client note last week.
The firm, which has estimated Google's quarterly revenue at $917 million, said it expects Google to beat that by $35 million.


Uhh, what? They estimate how incorrect their own estimates are going to be? That's fantastic.

1 Comments:

At 12:23 AM, October 20, 2005, Anonymous Anonymous said...

Yeah, that's kind of funny. I don't really understand it either. I guess they don't want to do the obvious thing and revise their estimates?

 

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