20 January 2012 - 6:07pm | posted by | 0 comments

Google revenue zooms 28% but shares still take an 8% hit

Larry Page: "Very happy."Larry Page: "Very happy."

Google's shares dropped more than 8 percent this morning after the company's fourth-quarter earnings report disappointed analysts. The fall cost the company nearly $17 billion in market capitalisation.

In fact Google reported net revenue GROWTH of 28 percent. But The company's adjusted earnings per share at $9.50 was well short of the average analyst estimate of $10.49.

Google blamed this "failure" on unfavourable foreign exchange rates and some recent changes in its search and advertising algorithms.

Analyst Josh Olson, of the Edward Jones investment firm, told the San Jose Mercury News he was concerned about an 8 percent decline in the amount advertisers pay Google each time a user clicks on an ad. But he said he was confident Google would " make the right adjustments and get the formula right."

Other analysts looked on the positive side . Eric Bleeker at Motley Fool said, "Here's a company that's just reported better than 25 percent growth.There's not a single big company not named Apple that wouldn't kill for those results."

Google CEO Larry Page' said he was "very happy with our results. Google had a very strong quarter." However, said the Mercury News , some investors and analysts were concerned about the amount Google has been paying out while increasing its workforce . Google's spending increased 35 percent from the previous year.

"Google looks more mortal this quarter," Colin Gillis, an analyst at BGC Partners, told Bloomberg News. "A lot of what Larry Page is doing is a lot more tolerable to investors when the business is firing on all cylinders."

Be the first to comment on this article: sign in or register.

Latest Projects from the Profile Hub

Sports Bra Award Win

19/12/2014
Our super-star lingerie client, Wacoal Eveden, is...

Malibu - creating the perfect brand moment to enhance engagement

17/12/2014
The challenge How do you change customers’ perception of...

Driving Sales From Social During Black Friday

16/12/2014
The craze of Black Friday crossed the pond and hit the UK...

BREACH: LETS JACK

16/12/2014
‘Jack’ – the infectious track by British producer Breach...

Launching the Seasonal Cities App

15/12/2014
In Q3 2014 Rooster was tasked with launching the new travel...