Google shares down 10%

GOOGLE Inc’s shares fell 10% in after-hours trading yesterday after the internet search giant missed Wall Street’s revenue targets, despite its revenue increasing about 25%.

The search engine giant employs about 2,000 people in Ireland.

Google’s net revenue, which excludes fees shared with partner websites, was $8.13 billion (€6.27bn) in the fourth quarter, versus $6.37bn for the same period a year ago.

Analysts polled by Thomson Reuters I/B/ E/S were looking for net revenue of $8.4bn.

The revenue shortfall represents a rare miss for Google, which has exceeded Wall Street’s revenue targets for the past eight consecutive quarters.

The amount of clicks on Google’s search ads increased sharply during the last three months of the year, but the cost per clicks — the amount Google charges advertisers for the ads — decreased 8% from the third quarter and 8% from the same period a year ago.

Google’s operating expenses increased to 32% of revenue during the fourth quarter, versus 30% of revenue at this time last year.

Google said yesterday that it earned $2.71bn, or $8.22 per share in the fourth quarter, compared to $2.54bn, or $7.81 per share for the same period a year ago.

Excluding certain items, Google said it earned $9.50 per share.

Shares of Google were down 10% at $575 in after-hours trading last night.