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Earnings reports for both Google and Microsoft disappointed analysts today sending shares tumbling. In after-hours trading, Google is seeing the worse end of trader's reactions with a nearly instant seven percent drop.

That means a Google stock that was $533 at the closing bell is now worth about $498. Google revenues were up 39 percent year over year, and three percent on the first quarter, hauling in about $5.37 billion. Nevertheless, analysts estimated Google should bring in $4.72-4.74 earnings per share, and traders are punishing the stock this afternoon for achieving just $4.63.

That's nearly 20 cents less than EPS brought in the first quarter. The problem seems to rest with net income, of which Google made less this quarter than last quarter due to lower network revenues through AdSense, fewer paid clicks, and higher content acquisition costs.

Google also cites its acquisition of DoubleClick as having a significant impact on cash flow and that cash flow's ability to earn interest. Interest earned in the second quarter was nearly a third of that earned in the first. Net income overall was down over $600 million.

Eric Schmidt, like good CEO's do, championed the positive and predicted good outcomes as a result of the DoubleClick opposition. "Strong international growth as well as sustained traffic increases on Google's web properties propelled us to another strong quarter, despite a more challenging economic environment," he said.

"As we continue to focus on innovating in our core business of search, ads and apps, we also look forward to enhancing the experience of our users and expanding the reach of our advertisers and partners with new technologies and formats, particularly as our integration of DoubleClick gains momentum and creates new opportunities in display advertising and elsewhere."

Microsoft, despite raking in $15.84 last quarter and reaching $60 billion in annual revenue with the fastest growth since 1999, still missed estimates by about two cents. That's enough to send shares down six percent after hours to $25.85. Microsoft, according to the press release, could cite lots of excuses, but focuses on the positive as well.

The biggest excuse Microsoft offers is honoring $1.1 billion worth of Xbox warrantees.