Accentuating the caveat emptor perspective with critical commentary on financial disclosure. I adopt a skeptical persona and look for chinks in the teflon coating of financial disclosure. My job is to identify financial warts. Perhaps a Black Swan. Disclosure: I do not hold positions in stocks mentioned for three trading days before or after blog post.
Thursday, April 20, 2006
Google's FX Fixation
Google maintains that FX rates had an inconsequential effect on sequential international growth. Then they go on to say that if FX rates had stayed the same from Q1 2005 to Q1 2006 international revenues would have been $65 million higher. Having your cake and eating it also. FX rates can, do and will fluctuate. Trying to figure out and actually report what would have happened if the rates had not changed seems naive. International business need to develop a true global mentality when navigating FX rates and the fluctuations. International business is of growing importance at Google. Given last years/quarters issues regarding allocation of costs and their impact on effective tax rates one wonders if Google has a deep understanting of operating globally. Perhaps a strategic hire from an international bank of major oil company is called for.