Google's Q4 Earnings Do Not Meet Expectations

Feb 1, 2008 • 9:49 am | comments (2) by twitter | Filed Under Other Google Topics
 

It seems that recession is finally here. A report that Google's earnings did not meet analysts' expectations has surfaced.

The good news:

Google earned $1.21 billion, or $3.79 per share, during the final three months of 2007. That's up 17 percent from net income of $1.03 billion, or $3.29 per share, in the same period a year earlier.

The bad news:

It's the first time Google's quarterly profit has climbed by less than 25 percent since the Mountain View-based company went public nearly 3 1/2 years ago.

Why is Google failing? One report says that Google is having difficulty selling ads on social networking sites. Sergey Brin has been quoted as saying "I don’t think we have the killer best way to advertise social networking. Some of the things we were working on in Q4 didn’t pan out. There were some disappointments there.”

Is the end near for Google? Forum discussion continues at WebmasterWorld.

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Comments:

Glen Harness

02/01/2008 04:19 pm

If a 17% profit is a sign of "recession" then I'll take a recession any time. Please, before you start telling everyone the sky is falling with a recession, at least look up the definition of recession. We won't know if we're in a recession at least until April, and maybe not until July. See, it takes 2 consecutive quarters of negative growth in GDP before we're in a recession.

SEMWorld

02/03/2008 07:17 pm

We haven't had negative GDP growth with the latest 4q 2007 GDP numbers. It seems a recession will be created though as everyone trash talks the US economy and spooks it, it looks more like create a crisis.

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