The core advertising business grew more slowly, surprising investors who are used to rapid growth from the internet giant. The Group also fell well short of expectations in terms of turnover. The Californians blamed their service provider RR Donnelley for the breakdown, but confirmed the figures.
The chaotic course of events brought back memories of the Facebook debut, where technical glitches also unsettled investors and led to significant losses. According to traders, stock market participants first sold the shares and only then asked questions. Although the figures were weak, they were not as bad as they appeared at first glance.
Analysts were nevertheless disappointed: the core business had slowed down significantly, which was shocking, said one expert. Apparently, users are searching more and more without Google - for example with apps on smartphones.
Less advertising revenue
Like many other internet companies, Google is struggling to absorb the rapid shift in users away from fixed devices to smartphones and tablet computers. This is having an impact on the balance sheet: Advertisers are paying much less for ads on mobile devices than on traditional PCs.
The average price that Google received from advertisers per click fell by 15% compared to the previous year. Compared to the previous quarter, there was a drop of three percent. This key figure for internet companies fell for the fourth quarter in a row.
On the bottom line, profits in the third quarter slumped to 2.18 billion dollars. Excluding certain special items, Google earned 9.03 dollars per share - significantly less than the 10.65 dollars expected by analysts. Net sales amounted to 11.3 billion dollars. In addition, the recently acquired cell phone manufacturer Motorola Mobility continues to make losses.
Larry says sorry
The early publication caused astonishment. Google explained that the company commissioned to do this, RR Donnelley, had sent the statement without approval. The cause was probably human error, the head of the company, Tom Quinlan, told the Wall Street Journal. It is still being investigated what exactly happened.
The document was obviously not yet ready for dispatch. In the second paragraph of the
press release, a field was left blank in which a "quote from Larry" was to be inserted. This apparently referred to CEO Larry Page. He immediately apologized for the mishap with the premature publication of the current quarterly report. He regrets the confusion, Page said in a conference call after the US stock exchange closed on Thursday.
In New York, the share turned around entire indices and dragged technology stocks down with it. The stock ended trading down eight percent at 695 dollars. (sda)