Google shares fell almost 10% after the company presented the financial results for the fourth quarter. Investors were unhappy that the profit was lower than projected. By the end of trading the shares rose slightly and the decrease was 8.6%.
On Thursday, Google provided its financial results for the fourth quarter. During the period from October to December, the company's profit totaled $ 2.71 billion, up just 6% more than in the fourth quarter of 2010. At the same time quarterly revenue for the first time in the history of the company break through the $ 10 billion - the figure was $ 10.58 billion, up 25% over the previous year.
But investors were disappointed with these results. After their publication Google shares briefly fell 10%, and the capitalization of the company fell by nearly $ 20 billion in stock during the day played a fall, and by the end of trading on Thursday, the decline was 8.6%.
Such a reaction of investors due to the fact that the financial results of the fourth quarter were lower than projected. Net income totaled $ 9.5 per share, while analysts were expecting about $ 10.51 per share. Typically, the quarterly results in line with expectations of analysts Google, besides the fourth quarter is traditionally a good one for the company.
Google was unable to meet market expectations due to insufficient good results from the sale of content. Although the number of clicks on ads that are shown next to search results has increased by 34% compared to 2010, the average amount that the advertiser pays when a user moved from his exile, fell by 8% compared with the fourth quarter of 2010. In addition, according to itself Google, its financial results would have been better if not for changes in exchange rates during the past quarter.
On Thursday, Google provided its financial results for the fourth quarter. During the period from October to December, the company's profit totaled $ 2.71 billion, up just 6% more than in the fourth quarter of 2010. At the same time quarterly revenue for the first time in the history of the company break through the $ 10 billion - the figure was $ 10.58 billion, up 25% over the previous year.
But investors were disappointed with these results. After their publication Google shares briefly fell 10%, and the capitalization of the company fell by nearly $ 20 billion in stock during the day played a fall, and by the end of trading on Thursday, the decline was 8.6%.
Such a reaction of investors due to the fact that the financial results of the fourth quarter were lower than projected. Net income totaled $ 9.5 per share, while analysts were expecting about $ 10.51 per share. Typically, the quarterly results in line with expectations of analysts Google, besides the fourth quarter is traditionally a good one for the company.
Google was unable to meet market expectations due to insufficient good results from the sale of content. Although the number of clicks on ads that are shown next to search results has increased by 34% compared to 2010, the average amount that the advertiser pays when a user moved from his exile, fell by 8% compared with the fourth quarter of 2010. In addition, according to itself Google, its financial results would have been better if not for changes in exchange rates during the past quarter.
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