Google Earnings Disappoint
Shares plunge after rare miss on analysts' estimates
By Newser Editors and Wire Services
Posted Jan 19, 2012 5:58 PM CST
In this Jan. 17 photo, a sign for Google is displayed behind the Google android robot at the National Retail Federation in New York.   (Mark Lennihan)

(Newser) – What was supposed to be a celebration of the most prosperous quarter in Google's 13-year history instead turned into a major letdown. The disappointment came with today's release of fourth-quarter earnings that showed the Internet search leader fetched less money per click on its ubiquitous online ads. That came as an unsettling surprise because investors had assumed a surge in online holiday shopping during November and December would enable Google to charge more for its ads. Instead, the average price decreased by 8% from the same time in 2010.

Google executives traced part of the decline to technical changes aimed at delivering more ads that attract people's interest. Those tweaks apparently paid off as the total clicks on Google's ads increased 34% from the previous year. The lower prices still contributed to a dramatic slowdown in Google's earnings growth. The performance fell well below analyst estimates, and Google shares plunged $57.07, or nearly 9%, to $582.50. The company earned $2.7 billion, or $8.22 per share, in the fourth quarter. That's just a 6% increase from $2.5 billion at the same time in 2010.

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Showing 3 of 9 comments
InferiorToYou
Jan 21, 2012 3:00 PM CST
They also reported 700,000 new Android registrations per day .
Nora_Kit
Jan 19, 2012 10:20 PM CST
I think we all need to consider the possibility that we will not have electricity even as soon as 3-4 years from now. Just think all of these gadgets we have will be useless. Since 1974 (when I woke up) we knew that someday our oil supply may be cut off for good and I don't care if you live in a mansion with all the latest stuff or just a working poor person we will all be at the same level.
carbonated_turtle
Jan 19, 2012 6:11 PM CST
Is "disappoint" really the word you were going for? They only earned $2.7 billion in the 4th quarter? Those poor execs are going to have to settle for a new Porsche this year instead of a Ferrari.