GOOG, Google and GAAP

A commenter named GOOG Skeptic said on Amr's blog:

Can we talk about the discrepency between GOOG’s pro-forma shenangians and their GAAP performance? Pro-forma earnings are supposed to reflect one-off events that don’t have anything to do with the on-going performance of the company. However, in each quarter, GOOG keeps adding back an increasingly large stock based compensation expense, an expense which is certainly not a one time occurrence. After all, SBC is THE way that GOOG recruits and retains their employees (anyone who knows anyone at that company can tell you that). When you look beyond these “everything but the bad stuff” earnings and view the actual GAAP earnings, it is apparent that quarter to quarter growth has not improved at all over the past four quarters. Thoughts?

I will present my analysis soon on this.

Frank

  post to Del.icio.us