Tech Biz Update: Today’s Google Drama Rolls On With Casualties
There is much Google (NASDAQ:GOOG) drama on Wednesday, and it’s not over yet. The company’s third quarter results came out earlier than was expected and there was a reason for it, says Google: R.R. Donnelley & Sons Company filed a draft of its weak results without being authorized to do so. According to the now questioned report, the firm’s earnings per share of $9.03 missed consensus by $1.62, with revenue of $11.33 billion, which would be up by 51 percent year-over-year reinforced by the Motorola purchase, yet that number missed by $530 million. In late afternoon, Google released its official report and in it, Larry Page says that he is “really excited about the progress Google is making creating a beautifully simple, intuitive Google experience across all devices.” However, the key numbers do match the ones in the draft report released earlier. Shares were halted for a period, but resumed trading at 3:20 Eastern Time and are down markedly. The conference call is set for 4:30. Meanwhile, a number of Internet stocks are heading down in response to the ongoing situation, such as Facebook (NASDAQ:FB), Yelp (NYSE:YELP), Groupon (NASDAQ:GRPN), and Zynga (NASDAQ:ZNGA).
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