Poor Results Wipe off 9 per cent of Google’s Market Value

By Thursday, October 18, 2012 0 Permalink 0

The Mountain View based search engine giant recently leapfrogged Microsoft and became the second-largest technology company in the US in terms of capitalization. The recent results have definitely taken investors by surprise as it released its results just before the market close. Google released the results in a SEC filing, which was probably released earlier by mistake.

Google reported net revenue of $11.3 billion as compared to Wall Street expectation of $11.9 billion, excluding traffic acquisition costs; net income of $2.18 billion and revealed that it managed to earn $9.03 a share, which was quite lower than what analysts had predicted – $10.65 on an average.

The announcement, which was expected to come after close of the market, was made before which saw the share prices of the company go down by 9 per cent to $687.39.