Google’s shares slump on revenue news
27% revenue increase for last three months of 2011 does little to appease market expectations
Google's shares slumped 10% to $575 in after hours trading when the company reported revenues far below market estimates, according to Reuters.
The company reported a 27% increase in revenues for the last three months of 2011, and three-month revenues of $10.6bn, its net profit rose 6.4% to $2.7bn.
"Google had a really strong quarter ending a great year," Google's chief executive Larry Page said. "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."
Microsoft and Intel also posted their revenues for the same period; Microsoft's revenues were flat at $6.62bn, while Intel saw a 6% increase in earnings to $3.36bn, despite the floods in Thailand affecting their business.
"We're seeing strong growth in the merging PC markets. China now has 20% consumption of the personal PC market - there are about one million PCs 'consumed' every day globally and there is still lots of growth, especially the emerging markets of Brazil, Russia, India and China," Graham Palmer, head of Intel, told BBC Radio 5 live.
For the full year, Google reported a 29% rise in revenue to $37.9bn, with net profit up 14% to $9.7bn.