Early Buzzers: 4 Big Name Stocks in the Red
Shares of Google (NASDAQ:GOOG) closed 8 percent lower on Thursday. The search giant tripped over a cliff when it surprised investors with an early release of earnings — a mistake Google is blaming on third-party publisher R.R. Donnelley & Sons (NASDAQ:RRD). Net income came in at $2.18 billion for the third quarter, compared to $3.18 billion a year earlier. Larry Page, chief executive officer, apologized for the early leak. In regards to the quarterly results, he said, “I am also really excited about the progress we’re making creating a beautifully simple, intuitive Google experience across all devices.” Google shares edged slightly higher in late trading.
Chipotle Mexican Grill (NYSE:CMG) shares are down over 13 percent in early trading today. The company announced that third quarter earnings increased 19.6 percent to $72.3 million, compared to $60.4 million ($1.90 per share) a year earlier. However, the results fell short of the mean analyst estimate of $2.33 per share. The drought seen over the summer is already impacting input costs for the company.
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Microsoft (NASDAQ:MSFT) shares are down more than 2 percent this morning. Net income dropped 22.2 percent to $4.47 billion (53 cents per share), compared to $5.74 billion (68 cents per share) a year earlier. Revenue also fell 7.9 percent to $16.01 billion. “The launch of Windows eight is the beginning of a new era at Microsoft,” said Steve Ballmer, chief executive officer at Microsoft. “Investments we’ve made over a number of years are now coming together to create a future of exceptional devices and services, with tremendous opportunity for our customers, developers, and partners.”
Apple (NASDAQ:AAPL) continues to trade lower after shares closed 1.86 percent in the red on Thursday. The tech giant lost its appeal of a ruling in favor of rival Samsung’s Galaxy tablet. A British court on Thursday denied Apple’s appeal of an earlier decision that the tablet did not copy the iPad. Britain’s Court of Appeal upheld its judgment that, despite some similarities, Samsung did not infringe Apple’s design, in part because its products were “not as cool” as the iPad. The Google debacle also weighed on the tech sector in general.
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