Wednesday, March 08, 2006

Google's Selective Disclosure?

Google has been accidentally releasing all kinds of market moving information lately, ranging from growth warnings by the CFO to plans for online backup space on a "GDrive". Now, among slides from an annual meeting with analysts the world's most benevolent company inadvertently posted a 2006 revenue forecast of $9.5 billion. Google followed up with a press release, saying the figures "were not created for financial planning purposes and should not be regarded as financial guidance."

That's interesting, because if this was any form of guidance, the Internet superstar could be guilty of selectively disclosing market-moving information to analysts. This from a company who has publicly refused to provide guidance since its flotation.

WSJ quotes UBS analyst Benjamin Schachter that the figure appears to line up with Wall Street average estimates. Well, no duh! If Google indeed shared this with them at a meeting in the early fourth quarter of last year, it's no surprise the numbers line up...

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