How glad am I this morning that I’m not the R.R. Donnelley employee who released Google’s financials early?
The sell-off of Google’s stock began swiftly and brought the price down almost 9%. This occurred because investors weren’t expecting those disappointing figures after the stock price had reached an all-time high over a continual increase in the previous three months.
Trading was actually suspended for three hours after the race to sell began to “allow investors to digest the information.” After this digestion, apparently, cooler heads prevailed and the stock recovered slightly.
What can we learn here? Bad news—especially bad financial news—must be communicated effectively. At Moore Bookkeeping, our goal is to produce accurate, timely financial information that you can use to operate your business. Give us a call and let us help you avoid getting blindsided.