There are few stocks that seem to continually climb higher, but one of them is Google - until now. When the search engine giant's poor earnings were leaked early the stock dropped fast.
There are few stocks that seem to continually climb higher, but one of them is Google — until now. When the search engine giant’s poor earnings were leaked early the stock dropped until trading was halted.
Google’s earnings report was leaked when R.R. Donnelley filed the report without authorization, according to Google. According to the report, cost per clicks were down 15% year over year. Meanwhile the Motorola division showed an operating loss of $527 million with revenue of $2.58 billion, missing expectations of $2.9 billion.
The stock fell 8.91%, or $67.21, within 20 minutes of the report leaking. Trading was halted from between 1:40 p.m. until 3:24 p.m., because Google was finalizing the earnings release. When trading resumed the stock climbed slightly, but still finished down 8% on the day.
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On Friday morning, Google’s stock wasn’t faring any better, down another 1.66% before noon.
However, Google’s numbers are being dragged down by Motorola, which the company acquired a few months ago. Without the Motorola acquisition Google’s revenue was up 18.5%.
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