Snappy newsletters. Simple Facebook sharing. Spirited comments. Sweet features are waiting… GET THEM NOW!

Google's 17% Profit Not Good Enough for Markets

Search giant comes up short of estimates

By Jonas Oransky,  Newser Staff

Posted Jan 31, 2008 4:14 PM CST

(Newser) – Google disappointed investors with its after-hours announcement of a 17% rise in net income, signaling to many that credit woes could be hurting Internet use. The climb to $1.21 billion, or $3.79 per share, from $1.03 billion, or $3.29 a share, one year earlier underperformed estimates of a $3.91 share price, Bloomberg reports. The search giant’s shares have already fallen 18% in 2008.

Web searches also fell 3.9% in December. Consumer confidence is remarkably low, and watchers worry that Google customers will cut their ad budgets—damaging the company's bottom line. Google accounted for 75% of all domestic search ads last year; still, it rarely misses observers’ quarterly estimates, and 32 of 36 analysts continue to list the stock as a buy.

Japanese university computer students from schools in Tokyo pose for pictures as they tour around Google headquarters in Mountain View, Calif., in this April 19, 2007 file photo. (AP Photo/Paul Sakuma, file)
Japanese university computer students from schools in Tokyo pose for pictures as they tour around Google headquarters in Mountain View, Calif., in this April 19, 2007 file photo. (AP Photo/Paul Sakuma,...   (Associated Press)
Google employees wait for the visit of New York Mayor Michael Bloomberg at the company's New York offices on Thursday, Jan. 31, 2008.  Google is expected to release quarterly earnings after the market closes.  (AP Photo/Mark Lennihan)
Google employees wait for the visit of New York Mayor Michael Bloomberg at the company's New York offices on Thursday, Jan. 31, 2008. Google is expected to release quarterly earnings after the market...   (Associated Press)
Chairman and CEO of Google Inc, USA, Eric Schmidt gestures while speaking during a working session at the World Economic Forum in Davos, Switzerland, Friday Jan. 25, 2008. Buoyed by a burst of optimism from Bill Gates, business and government leaders attending the World Economic Forum were set Friday to...
Chairman and CEO of Google Inc, USA, Eric Schmidt gestures while speaking during a working session at the World Economic Forum in Davos, Switzerland, Friday Jan. 25, 2008. Buoyed by a burst of optimism...   (Associated Press)
« Prev« Prev | Next »Next » Slideshow
To report an error on this story, notify our editors.
A snapshot of the day's best news stories.
 
COMMENTS
Be the first to comment on this story.

More Newser Stories

Web Apps Keep Tabs on National Mood

Automakers Pushing 'Connected' Cars

Google, Facebook Yank Content as India Cracks Down

SOPA Author: 'I Don't Mind Taking That On'

Is Google Launching Own Social Networking Site?


NEWS FROM OUR PARTNERS
Other Sites We Like:   24/7 Wall St.   |   Betty Confidential   |   BuzzFeed   |   Cracked   |   Fark   |   Timelines   |   The Frisky   |   Geek Sugar   |   NewsOne