Google Stocks Tumble Courtesy of Early Earnings reports Ranked Results
(EMAILWIRE.COM, October 26, 2012 ) San Francisco, CA -- Bad news yesterday for stockholders of Google Inc., the worlds largest search engine. Google (GOOG) stocks took a steep turn for the worse yesterday as poor third quarter earning were announced, which occurred several hours earlier than expected. The report hit the market while trading was still open and the bad news caused Google shares to drop by 9% before trading was halted.
A press release by Google said that its financial printer, R.R. Donnelley & Sons, had filed the report without authorization from the search giant. R.R. Donnelley has not yet made a comment about the premature release.
According to the report, net income for Google shrank 20% last quarter, after being weighed down by expenses taken on by acquiring Motorola for $527 million earlier this year. In addition to the new expenses, advertisement revenue prices dropped even while Googles search engine continues to gain in popularity.
The third quarter report showed that though the rate of paid clicks for paid ads increased by 33% compared to last year, the average price commanded by Google per-click dropped by 15%. The lower prices are blamed on a shift toward mobile internet-usage, via smartphones and tablets as opposed to traditional desktop searches. Google Mobile Ads are priced noticeably lower than their PC counterparts.
Other, non-industry-related issues, such as global currency fluctuations, were also cited as causes of lower-than-expected earnings during a conference call held later in the day by Larry Page, Google Chief Executive. The CEO expressed that he is really happy with our business, despite the scramble earlier today, which he apologized for.
Even with the one-day tumble, Google stock prices are still performing well, up over 6% this year. Third quarter profits posted at $2.18 billion, down from $2.73 billion from last year. Net revenue for the ubiquitous internet company amounted to $11.86 billion, about $500 million under forecasted expectations.
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