Google hit by disappointing profits

The meteoric rise of internet search giant Google was hit today after a disappointing profits performance in the final three months of the year.

Google has its European headquarters in Dublin.

Despite seeing profits almost double for the final three months of 2005 to $372m (€306m), the company’s earnings per share of $1.54 was well below the $1.76 expected by analysts.

Shares fell 12% in after-hours trading in New York last night – Google’s biggest one-day drop since its flotation in August 2004 – as it also told investors it had been hit by a slowdown in advertising spending in the UK.

The decline is expected to wipe €13.2bn from the value of the stock when official trading begins later today.