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Wall Street Turns Nose Up At Google Earnings Report

Google's stock falls despite strong numbers

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Google’s latest earnings report is out, and the search giant did well during the fourth quarter of 2009, beating analysts’ expectations.  The unfortunate thing (at least for shareholders) is that a lot of people must have wanted it to do better still, because the stock has taken a bit of a plunge in after-hours trading.

Google LogoLet’s start with the good news.  Google generated $4.95 billion in net revenue, topping a consensus estimate of $4.92 billion.  The company managed to report $6.79 in terms of earnings per share, too, even though even though it was supposed to post closer to $6.50.

Then here are a couple more interesting facts: as of December 31st, Google was sitting on top of $24.5 billion in cash, cash equivalents, and short-term marketable securities.  Things went well enough (and the outlook’s bright enough) that it added 170 full-time employees during the fourth quarter, too.

And Eric Schmidt thinks his company is on the right track.  "Google had a strong fourth quarter, with 17% year over year revenue growth," he said in a statement.  "Given that the global economy is still in the early days of recovery, this was an extraordinary end to the year. . . .  As we enter 2010, we remain hugely optimistic about the internet and are continuing to invest heavily in technological innovation for the benefit not only of our users and customers, but also the wider web."

Still, anyone who bought Google’s stock just before the market closed and its earnings report came out has lost a significant amount of money; Google’s stock is down 4.33 percent in after-hours trading at the moment.

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Wall Street Turns Nose Up At Google Earnings Report
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  • Tim

    I can tell you where the extra revenue came from!

    From me. From others. From all the extensive network of publishers that have broken their back to make sites over the years only to see Google “clawback” earnings from their Google Adsense program. They said wer were “partners”, but now it’s obvious we are all just pawns for their benefit. They care less about us.

    They are, at this point, only looking after themselves in order to make quarterly numbers, which as we know, many companies ultimately fail b/c they put quarterly numbers above all else at the expense of their foundation.

    Google won’t go up forever. Publishers are seething angry, frustrated, and actually sad that is has come to this.

    Most publishers I have talked to have seen earnings go down 60% to 80% while Google still keeps climbing.

    I’ve decided to leave and sell my own advertising. They control my future at this point and I want to take that back.

  • Danish

    And my company plans to be the technology force behind people like you who want to drive the paradigm shift away from this Google world we live in! Good Luck and lets stay in touch

  • http://www.Trade-Guild.net Brandt Hackney

    This was an amazing earnings call-check out the video from youtube at http://www.trade-guild.net/2011/04/wolf-on-wall-streets-3rd-earnings-call.html#links