Google shares suspended as premature results stun Wall Street

Google’s shares tumbled as much as 11pc today after the web search giant’s profits and revenues, accidentally published early, fell short of expectations.


The company, which earlier this month surpassed Microsoft in terms of value, clocked up revenues of $11.3bn in the third quarter, compared to analyst estimates of $11.8bn.
Profits came in at $9.03 a share, below analyst forecasts of $10.65. The results has been scheduled for publication after markets closed in New York, but they were accidentally released early, sending Google’s share price plummeting. The shares were soon halted, more than 9pc down at $687.30, amid fears that the stock would crash.

Google’s filings with America’s Securities & Exchange Commission also revealed a worrying drop in the amount of money the technology giant receives for each advert. Its average income per click fell 15pc over the three months to the end of September, sparking fears that it is losing traction with advertisers. The filings also revealed that it plans to make significant capital expenditures, reviving concerns over its outlay on staff.

"The core business seems to have slowed down pretty significantly,which is shocking. I don't think anybody saw this," said Sameet Sinha, analyst at B Riley. "The only conclusion l can look at is - search is happening more and more outside of Google, meaning people are searching more through apps than through Google search. "That could indicate a secular change, especially when it comes to ecommerce searches. "The big fear has always been - what if people decide just to go straight to Amazon and do their searches? And potentially that's what could be happening."

 

GOOG is the 2nd most widely held company (after Apple) that is held by hedge funds.

 

I saw that. Google had a really tough week and lost a ton of capitalization!

 

surprising to hear this.

 

The world is ruled by analyst.
I find that hilarious.

 

I find it great if things like this happen, as the "big guys" need to be reminded about their "don't be evil" slogan sometimes. And when you start losing a lot of money in terms of stock worth, then you will start thinking more about what you do. It doesn't hurt to lose money sometimes, as it will result in different decisions sometimes. Google is way too large and sometimes it doesn't hurt get hurt, as it might improve their standing about a few things.