Google Misses, Shares Slip

By Jason Lee Miller - Thu, 01/31/2008 - 18:23

Wall Streets pouts, kicks dirt

GOOG shares are taking a pummeling in after-hours trading, dropping as much as nine percent upon the release of Google's Q4 earnings report.

Things aren't that bad at Google, they still made a ridiculous lot of money. It just wasn't as ridiculous as Wall Street expected, missing estimates for both net revenue and earnings per share.

After all, the company did pull in $3.39 billion in net revenue and posted $4.43 earnings per share. Analysts expected more though, to the tune of $3.45 billion net, and $4.45 earning per share.

Google stock fell as much as $51 (9%) upon the news. After closing at $564.30, shares plummeted, and now have remained around the $520 mark.

Other than making traders pout and stomp their feet a little because they didn't get what they wanted, Google still posted some impressive numbers.

Total revenues for Google were $4.83 billion, a 51% increase over the same quarter 2006, and a 14% increase over Q3 2007. Google-owned sites generated 65% of that revenue, or $3.12 billion, which represents 58% more than Q4 2006, and 14% more than Q3 2007.

Google partner sites represented the rest of the company's revenue, pulling in $1.64 billion, or 34% of the total. International revenues proved strong for Google, accounting for 48% of Google's total intake, which is consistent with Q3 2007.

Google said paid clicks increased approximately 30% over the year and 9% since Q3.

As of the end of 2007, Google is still sitting on a mountain of cash with $14.2 billion.

News Tags: Search, Google, Financial

About the author:
Jason Lee Miller is a WebProNews editor and writer covering business and technology.

4 Comments

By Home Remedies (WPN reader) - Fri, 10/17/2008 - 22:25

Slumping Economy

It doesn't surprise me that Google stock took a small drop, my sense is that most of the work will see dropped sales and loss of stock value with the current economic climate

By puppies for sale (WPN reader) - Mon, 09/15/2008 - 02:33

Slow down to growth

Google may miss here and there, but overall will continue to grow. However, overall growth for Google will start to slow anyway as saturation online occurs

By hemroids (WPN reader) - Tue, 06/24/2008 - 02:40

Pretty Much Recession-Proof Now

Google are one of very few companies in the world who are as close to recession proof as a company can be. Share and overall sales are always going to fluctuate, but with Google, the overall growth is very impressive, and quarter by quarter they seem to continuously increase sales amounts and expand their business scope.

By Guest (WPN reader) - Thu, 01/31/2008 - 22:42

I think that the

I think that the expectations set on Google are just too much! The economy is bad, very bad! And despite this Google still did well, and that's a lot to achieve right now! I don't know why everyone was disappointed?!!! WHY??? They didn't lose anything, they still made A LOT of money! I think it's unfair that analysts expect too much from them especially during this time since our economy is not doing well.

To the disappointed analysts: Why don't you guys just waste your time on the companies that are NOT doing well and be happy that Google is doing quite well- compared to a lot of other companies!