$20bn Wiped Off Google Value Despite Profits Boost
David Teather
The Guardian
__________
New York (US):
Google last night reported a near doubling of fourth quarter profits, but still managed to disappoint a Wall Street which has become used to jaw-dropping growth from the search engine. Shares fell by as much as 19% in after-hours trading.
The company posted earnings of $372m (£210m), compared with $204m (£115m) in the same period a year earlier. The figures did not include a $90m contribution it made during the quarter to its charitable foundation.
Still, the results failed to meet the forecasts of most analysts for the first time since Google went public in August 2004. In part, the company blamed weaker advertising in certain international markets over the Christmas holidays, especially the UK.The UK, which is Google's second largest market, accounted for 14% of group revenues compared to 15% in the third quarter. Google also cited a higher tax rate as a reason for missing Wall Street targets.
After hitting their low in after-hours trade last night, the firm's shares rallied a little and were changing hands at $367.32, down $65.34, a fall of around 15%. The downturn wiped around $20bn from the value of the company.
Feb 01, 2006
David Teather
The Guardian
__________
New York (US):
Google last night reported a near doubling of fourth quarter profits, but still managed to disappoint a Wall Street which has become used to jaw-dropping growth from the search engine. Shares fell by as much as 19% in after-hours trading.
The company posted earnings of $372m (£210m), compared with $204m (£115m) in the same period a year earlier. The figures did not include a $90m contribution it made during the quarter to its charitable foundation.
Still, the results failed to meet the forecasts of most analysts for the first time since Google went public in August 2004. In part, the company blamed weaker advertising in certain international markets over the Christmas holidays, especially the UK.The UK, which is Google's second largest market, accounted for 14% of group revenues compared to 15% in the third quarter. Google also cited a higher tax rate as a reason for missing Wall Street targets.
After hitting their low in after-hours trade last night, the firm's shares rallied a little and were changing hands at $367.32, down $65.34, a fall of around 15%. The downturn wiped around $20bn from the value of the company.
Feb 01, 2006
