< 1 min read

Google shares take a nose dive after a poor earnings report

Stock price goes down by almost 10 per cent

In what is considered an unexpected development, search king Google posted a less-than stellar earnings report which scared investors resulting in its stock declining by nine per cent. Trading was then suspended by the NASDAQ exchange. The stock price now sits at $687.30 per share.

According to a report coming out of the U.S. Securities & Exchange Commission, Google’s third quarter earnings report was released unintentionally by the company based in Mountain View, Calif. Google did issue a press release saying it would will hold its quarterly financials conference call to discuss third quarter on October 18th at 1:30 p.m. Pacific Time 4:30 p.m. Eastern time. The third quarter earnings report showed a 20 per cent drop in profits. Google submitted net revenue of $11.33 billion which missed Wall Street expectations of $11.86 billion. Key factors attributed to this profit drop were Google expenses rose and its advertising prices went down.

Later on Google said on its Web site that early Thursday morning R.R. Donnelley & Sons, the financial printer, informed Google that they had filed its draft 8K earnings statement without authorization.

Google ceased trading on NASDAQ while the company works to finalize the document. Once it’s finalized Google will release its earnings, resume trading on NASDAQ and hold the earnings conference call 1:30 Pacific time.