Google reports a 20% increase in revenue, but income comes in slightly below prior year
Miss on income has traders taking down Google shares down in after hours trading
The search giant Google today reported third quarter earnings after the bell, reporting that revenue grew to $16.5 billion, up 20 percent. But net income came in at $3.72 billion, slightly below the same quarter last year.
The miss on earnings is leading traders to take the stock down hard in after hours trading, with the stock falling over 5 percent. Before the earnings announcement, Google shares stood at $536.53 at the market’s close, but were testing the $500 level for a while before recovering somewhat.
The problem appears to be a drop in its mobile ad prices, as Google may be experiencing what publishers are only too aware of, that new digital platforms are proving less profitable than older platforms.