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Thursday, 31 January 2008, 22:59 GMT

Google profits disappoint market

Google There were signs of a slowdown at Google after it reported disappointing profits in its most recent quarter.

Google's profits were up 17% to $1.21bn (£608m) for the three months to the end of December.

Some analysts had been hoping for stronger profit growth and its shares fell sharply in after hours trading.

Google's shares have fallen more than 18% so far this year on concerns that the slowing US economy will cause advertisers to cut back on spending.

"Disappointing"

Investors have become used to Google reporting extremely strong profit growth.

Analysts say the latest quarter shows that even Google is not immune to an economic slowdown in the US.

"I think its essentially an in-line quarter for Google which, given the history of beating expectations is disappointing Wall Street.

"There was a slight softness in revenue which perhaps portends softness going forward due to the US economy," said Clayton Moran, senior vice president of the Stanford Group.

Google's sales for the quarter were $3.39bn, up 52% but not as much as analysts were hoping.




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Related to this story:
US clears Google-Doubleclick deal (20 Dec 07 |  Business )
Google shares continue to surge (09 Oct 07 |  Business )
Google shares breach $600 level (09 Oct 07 |  Business )
Google profits miss expectations (19 Jul 07 |  Business )
Google profits rise on ad revenue (19 Apr 07 |  Business )
Google unveils UK payments system (12 Apr 07 |  Business )

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