Earnings miss hammers Google stock
Google (GOOG) sank in late trading after the Net search giant became the latest tech titan to disappoint Wall Street with its fourth-quarter profit report. Google made $4.43 a share for the quarter ended Dec. 31, on a so-called non-GAAP basis. That compares with the analyst consensus estimate of $4.45 a share. Net revenue, excluding the money Google shares with advertising partners, was $3.39 billion - just shy of the $3.45 billion analyst estimate. Shares fell $48 to $516.20 - taking Google shares down to a level not seen since last September.
“We’re very pleased with our performance this quarter,” said CEO Eric Schmidt. “It reflects strong momentum in our core business, growing receptivity to our new business initiatives, and improved discipline in managing our operating expenses.”
Earlier, Fortune’s John Fortt mused on what might happen if Google missed its estimates. He noted that despite the company’s gains at the expense of rivals such as Yahoo (YHOO), a slowing economy isn’t likely to help the company meet Wall Street’s substantial expectations. So far, reassurance for tech investors doesn’t seem to be at hand.
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