Google Shares Plummet on Disappointing Earnings Report

Google (NASDAQ:GOOG) shares plunged nearly 10 percent in after-hours trading today following the announcement of its fourth-quarter earnings results.

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After the closing bell on Thursday, Google reported a 6 percent gain in earnings for the quarter ended December 31, missing Wall Street’s expectations.

The tech giant reported net income of $2.71 billion, or $8.22 per share, compared to net income of $2.54 billion, or $7.81 per share, for the same period the previous year.

Net revenue came in at $8.13 billion — analysts were expecting $8.43 billion, according to consensus estimates from FactSet Research.

But the company’s failure to meet expectations didn’t seem to faze CEO Larry Page, who focused on the positive.

“Google had a really strong quarter ending a great year. Full year revenue was up 29%, and our quarterly revenue blew past the $10 billion mark for the first time,” said Page, who co-founded Google with Sergey Brin in 1998.

“I am super excited about the growth of Android, Gmail, and Google+, which now has 90 million users globally — well over double what I announced just three months ago,” said Page, who also hinted that 2012 will hold many new developments that will grow the business.

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To contact the reporter on this story: Emily Knapp at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com