Google shares suspended as premature results stun Wall Street

Google’s shares tumbled as much as 11pc today after the web search giant’s profits and revenues, accidentally published early, fell short of expectations.

Google shares suspended as premature results stun Wall Street - Telegraph

The company, which earlier this month surpassed Microsoft in terms of value, clocked up revenues of $11.3bn in the third quarter, compared to analyst estimates of $11.8bn.
Profits came in at $9.03 a share, below analyst forecasts of $10.65. The results has been scheduled for publication after markets closed in New York, but they were accidentally released early, sending Google’s share price plummeting. The shares were soon halted, more than 9pc down at $687.30, amid fears that the stock would crash.

Google’s filings with America’s Securities & Exchange Commission also revealed a worrying drop in the amount of money the technology giant receives for each advert. Its average income per click fell 15pc over the three months to the end of September, sparking fears that it is losing traction with advertisers. The filings also revealed that it plans to make significant capital expenditures, reviving concerns over its outlay on staff.

"The core business seems to have slowed down pretty significantly,which is shocking. I don't think anybody saw this," said Sameet Sinha, analyst at B Riley. "The only conclusion l can look at is - search is happening more and more outside of Google, meaning people are searching more through apps than through Google search. "That could indicate a secular change, especially when it comes to ecommerce searches. "The big fear has always been - what if people decide just to go straight to Amazon and do their searches? And potentially that's what could be happening."