Google Q2 Profits Disappoint Analysts

21 July 2008

MOUNTAIN VIEW, California: Google's stock price tumbled as the online search colossus failed to make analysts' greed grade when the company posted second quarter profits of $1.25 billion (€788m; £626m).

Nonetheless, the numbers were up 35% compared with the same period last year, while revenues hit $5.37bn, a 39% increase over the same quarter in 2007. Numbers that almost every other publicly quoted US company would kill for!

Ceo Eric Schmidt (pictured above) reassured the markets that the general economic downturn is making little impact on Google's fortunes.

"All of us have anecdotal evidence [of economic troubles], but Google has done well, and we continue to believe we are in a good position even if the economy gets worse."

The company said advertisers in some sectors, such as auto finance and real estate mortgages, had cut back on spending.

But it insisted the loss had been mostly offset by "positive" growth in other areas.

Data sourced from USA; additional content by WARC staff