Once again, Old Wall has its head in the “clouds.”
Google’s stock price has historically been largely determined by ad revenue. Well, the tech behemoth reported a 3Q acceleration, but the stock is down nearly -10% since.
The reason, Andrew Freedman explains, is because Wall Street has chosen to focus on the company’s decelerating cloud revenue.
"I think the narrative point is really fascinating because it's somewhat of a reversal of last quarter,” Freedman says on The Call @ Hedgeye. “It's just price driving narrative."
"Isn't it interesting that Google is going to go down on Remaining Performance Obligations (RPO) billing, and Microsoft isn't yet?” Keith McCullough asks. “Wall Street picks their narrative; I think that's fascinating."
Watch the full clip above.
