Comments on: Poll: What do the positive Q1 results for Intel and Google mean for the tech industry?

By: Jojo

Jojo — Sun, 20 Apr 2008 07:52:49 +0000

I wrote a note to the NY Times on their article on GOOG earnings. Got this reply tonight from the writer confirming my information:

Thanks for your note.

I think we were pretty careful not to describe Google’s earnings as a blockbuster success. We said they were a relief to investors who were bracing for much worse. We quoted two analysts both saying that they remain concerned about growth in Google’s US business.

That said, you are right in noting that earnings were helped by currency.

That, and the fact they were also helped by lower than expected tax rates, were two points that we mentioned in earlier drafts but that were cut out during the editing process for space reasons.

By: Jojo

Jojo — Sun, 20 Apr 2008 05:03:02 +0000

I had read on some blog postings that GOOG achieved their numbers only because of currency changes, as Christoph Jaggi mentioned. However, I have not seen any mainstream media dig into this. They all just seem to do be doing the CNBC fawning reporting.

If the consumer is 70% of the economy in the USA and the consumer is cutting back, then this does not bode well for Intel and other the suppliers of tech goodies.

By: Christoph Jaggi

Christoph Jaggi — Sat, 19 Apr 2008 11:29:58 +0000

Never underestimate the impact of currency exchange fluctuations.

By: Allan

Allan — Sat, 19 Apr 2008 03:31:31 +0000

It’ll be interesting to see how the next wave of reports look. Bellwethers like Intel and Google should do well as they have dominating market positions. But in a recessionary environment like the one we’re in, tech spending gets pared, and only the best companies make it out relatively unscathed.