Visit our new site at BusinessJournalism.org
Reynolds Center Programs
Daylong Workshops
Online Seminars
One-hour Tutorials
Barlett & Steele Awards
Professors Seminar
Strictly Financials Seminar
Research
Covering Business
Starting Out
Business Writing
Business Design
Business Glossary
Ethics
Five Questions with...
Immigration Series
Business Journalism Resources
Job Listings
Academic Programs
Book Listings and Reviews
Scholarships
Calculators
Web Resources
Tutorials
Article Index
Workshop Registration
The Reynolds Center has announced its 2009-10 free workshop schedule.
Select a workshop and register from the drop-down menu below.
Online Seminars
The Reynolds Center registration for Fall 2009 free online seminars.
Hooked on Kindle
By Chris Roush
Tracking the Business Behind the Tomato
By Jonathan Higuera
Five Questions with Bill Choyke
By Jonathan Higuera
Finding the Economy's Silver Lining
By Dick Weiss
Double Whammy: Oil and Housing
By Jennifer Hopfinger
Business Reporters Battle Urge to Boost Google Sentiment
By Vandana Sinha
February 3, 2005 03:31 PM
A gaggle of business reporters followed the release of Google Inc. fourth-quarter earnings, raving about its explosive growth and surging share price.
It was reminiscent of the days of the tech boom.
However, one thing sets this coverage apart from the bloated hype of that earlier time: The actual numbers.
They remained the focal point of business reporters' accounts of how Google beat Wall Street expectations.
"These companies are making money," unlike their mid-1990 predecessors, says Chris Gaither, business reporter for The Los Angeles Times. "Rather than building up rah-rah sentiment, let the numbers tell the story."
In this case, not only did Google post actual profits in its fourth quarter, but they were up sevenfold compared to the same period last year. The company's revenue bulged by 101 percent from the prior year.
Gaither also keeps in mind the company's valuation. He asks experts and compares within the industry whether a company's stock price is in line with its remaining financial picture.
Business reporters also battled the hype by being realistic and thinking ahead about where Google could hit trouble spots down the line and what hurdles it faces.
In his story, Gaither describes concerns over Google's chief reliance on search-engine advertising for revenue. He also mentions the company's deep-pocketed competitors attempting to raid the search-engine market in a mission "to slow Google's growth."
"You ask analysts about that," Gaither says. "You ask company officials about that. You try to get it in the story."
Another story in BusinessWeek Online mentions a Feb. 14 expiration date, when employees will be able to sell about $177 million in stock-option shares. A share deluge in the market typically pushes down their price, reports Sarah Lacy.
As reward for beating their expectations, analysts are now raising them even further, many stories pointed out. Whether Google can maintain this uphill stride remains in question.
"Every company and every industry slows down at some point," Gaither says. "At some point, Google is going to miss (expectations)."
Until then, tech reporters should also avoid erring on the side of excessive distrust.
"It would be wrong to go too far in the other direction. The fact is, Google is in great shape right now. It's a young company and in a market that's growing really fast," Gaither says. "You have to be fair to the story and fair to the company."
More stories on Google's fourth-quarter earnings:
For past coverage on Google, or a column on how to duck the high-tech hype when covering the industry, head here.
Email this article
Copyright © 2008 Donald W. Reynolds National Center for Business Journalism
The Reynolds Center has announced its 2009-10 free workshop schedule.
Select a workshop and register from the drop-down menu below.
The Reynolds Center registration for Fall 2009 free online seminars.
By Chris Roush
Tracking the Business Behind the Tomato
By Jonathan Higuera
Five Questions with Bill Choyke
By Jonathan Higuera
Finding the Economy's Silver Lining
By Dick Weiss
Double Whammy: Oil and Housing
By Jennifer Hopfinger
Business Reporters Battle Urge to Boost Google Sentiment
By Vandana SinhaFebruary 3, 2005 03:31 PM
A gaggle of business reporters followed the release of Google Inc. fourth-quarter earnings, raving about its explosive growth and surging share price.
It was reminiscent of the days of the tech boom.
However, one thing sets this coverage apart from the bloated hype of that earlier time: The actual numbers.
They remained the focal point of business reporters' accounts of how Google beat Wall Street expectations.
"These companies are making money," unlike their mid-1990 predecessors, says Chris Gaither, business reporter for The Los Angeles Times. "Rather than building up rah-rah sentiment, let the numbers tell the story."
In this case, not only did Google post actual profits in its fourth quarter, but they were up sevenfold compared to the same period last year. The company's revenue bulged by 101 percent from the prior year.
Gaither also keeps in mind the company's valuation. He asks experts and compares within the industry whether a company's stock price is in line with its remaining financial picture.
Business reporters also battled the hype by being realistic and thinking ahead about where Google could hit trouble spots down the line and what hurdles it faces.
In his story, Gaither describes concerns over Google's chief reliance on search-engine advertising for revenue. He also mentions the company's deep-pocketed competitors attempting to raid the search-engine market in a mission "to slow Google's growth."
"You ask analysts about that," Gaither says. "You ask company officials about that. You try to get it in the story."
Another story in BusinessWeek Online mentions a Feb. 14 expiration date, when employees will be able to sell about $177 million in stock-option shares. A share deluge in the market typically pushes down their price, reports Sarah Lacy.
As reward for beating their expectations, analysts are now raising them even further, many stories pointed out. Whether Google can maintain this uphill stride remains in question.
"Every company and every industry slows down at some point," Gaither says. "At some point, Google is going to miss (expectations)."
Until then, tech reporters should also avoid erring on the side of excessive distrust.
"It would be wrong to go too far in the other direction. The fact is, Google is in great shape right now. It's a young company and in a market that's growing really fast," Gaither says. "You have to be fair to the story and fair to the company."
More stories on Google's fourth-quarter earnings:
For past coverage on Google, or a column on how to duck the high-tech hype when covering the industry, head here.
Copyright © 2008 Donald W. Reynolds National Center for Business Journalism