Google Shares Fall
Today Google Inc some how accidentally released it quarterly earnings prematurely midday and it reported the their profit had declined by 20% as their cost rose and their advertising prices fell. The early release with the Securities and Exchange Commission was unexpected and it triggered a selloff in Google shares. Google went ahead and released its real results a few hours later but the stock had dropped 9% before trading stopped. Then around 3:20 pm ET the stock trading continued and ended the day down only 8%.
When Google issued its official news release with the quarterly results their was a quote at the top by CEO Larry Page.
Larry Page quote: We had a strong quarter. Revenue was up 45% year-on-year, and, at just 14 years old, we cleared our first $14 billion revenue quarter.
Furthermore Google than issued a statement blaming the company that prints its financial documents R.R. Donnelley & Sons Co. Google blamed the owners of corporate reporting system EDGAR for filing their 8K without authorization. Also a result for the slight mess up shares of RRD fell as much as 7% before recovering slightly and the company was battling phone calls from other companies worrying about what they were up to.
Google Statement: Earlier this morning R.R. Donnelley, the financial printer, informed us that they had filed our draft 8-K earnings statement without authorization.
Google Shares Fall
The Shares of Google Inc were reported about 4 hours too early and its scared the market. The estimation earnings of $10.65 on revenues of $11.8 billion was the word on the street however when released it showed that Google reported earnings of $9.03 per share on revenues of $11.3 billion.
According to officials the only thing we can see now is that Google laid off a significant number of employees in its Motorola Mobility division. This was due to the lost traction on the critical Cost per Click metric and the fact that they failed to find a way to monetize users. Revenues from the Motorola division were $2.6 billion or 18% of Google’s total revenue. Operation losses from the newly acquired company were $527 million total and $151 million on an operating basis.
Due to the unfortunate situation Google Shares fell becomes investors got spooked and the value quickly dropped but than slowly began stabilizing. We are excited to see what Google will be pushing next as they recently overtook Microsoft Corp. making them the second largest U.S. technology company by capitalization.
How do you think Google will bounce back from this?
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