![]()
MOST SHARED
- Obama Sees Strains Unless US, China Balance Growth
- Future of Marketing
- Priceline Crushes Profit Forecasts; Shares Jump
- Mad Mail: Buy the Berkshire Hathaway Split?
- European Commission Objects to Sun Micro-Oracle Deal
- Can Apple Top Microsoft as Most Valuable Tech Firm?
- Oil Tomorrow
- Framed for Porn – By a PC Virus
- Nov. 9: Unusual Volume Leaders
- Look Ahead: 'Risk On' Attitude Could Fuel Rally Further
- European Commission Objects to Sun Micro-Oracle Deal
- Obama Sees Strains Unless US, China Balance Growth
- JPMorgan Lifts Salary Freeze Amid Recovery
- Can Apple Top Microsoft as Most Valuable Tech Firm?
- Buffett to Sell Stakes in Norfolk Southern, Union Pacific
- Do You Know Your Coca-Cola Myths?
- Cramer: 5 Stocks to Play the Next Bull Run
- Electronic Arts Beats Street, Announces 1,500 Job Cuts
![]() |
Click here for more earnings info |
Google's quarterly net income fell short of Wall Street expectations Thursday, suggesting it may be suffering from a weakening U.S. economy like its rivals, and its shares fell about 10 percent.
Net income for the second quarter rose 35 percent to $1.25 billion, or $3.92 per diluted share, from the year-earlier quarter's $925 million, or $2.93 per diluted share, when an unexpected jump in expenses hit results.
Excluding stock-based compensation costs, the company reported a profit of $4.63 per share—below the $4.72 average of Wall Street analyst forecasts.
Gross revenue rose 39 percent to $5.37 billion, matching the average forecast, according to analysts tracked by Reuters Estimates. Forecasts had ranged from $5.16 billion to $5.62 billion, representing growth of 33 percent to 45 percent.
Google shares [GOOG
Loading...
()
] fell about 10 percent after finishing regular Thursday trading hours 0.40 percent lower at $533.44. Google's stock price rose 20 percent during the most recent quarter, but is down for the year so far.
Despite the company's long-standing refusal to provide forecasts on its financial results, investors have come to count on Google to deliver positive revenue and earnings surprises over and above consensus expectations each quarter.
Since its initial public offering in August 2004, Google has regularly reported revenue surprises about 2 percentage points above the average analyst expectation, according to Reuters Estimates data.
Such outperformance powered the stock to lofty levels. But even merely meeting expectations is deemed by investors as a failing grade, leading to stock sell-offs.
For the quarter, Google's own sites accounted for 66 percent of revenue, similar to that of the March quarter and up slightly from 64 percent in the June quarter a year ago. Ads on Google partner sites produced 31 percent of revenue.
International revenue rose to 52 percent of revenue from 51 percent in the first quarter and 48 percent in the second quarter of last year.
- Do free market libertarians really believe what they say about ethics and shareholder value? The Big Money takes a look.
- Cramer did the research and found eight stocks that lead the pack. Read on to get his top picks.
- On the anniversary of the fall of the Berlin Wall, many in the former Eastern Bloc recall communism fondly.
- Software, biotech firms, even banks are watching a particular Supreme Court argument today.
- From politicians to CEOs to companies, here's your chance to vote for the winners and losers of 2009.
- A new sinister Internet viruses can turn you into an unsuspecting collector of child pornography.












