Google’s Profit Growth Declines to Meager 17%
After managing a 46% profit increase in Q3, Google could only manage a meager 17% growth in Q4 2007 (compared to Q4 2006). Wall Street rewarded Google with a 7% after-close stock plunge.
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Google earned $1.21 billion, or $3.79 per share, during the final three months of 2007. That’s up 17 percent from net income of $1.03 billion, or $3.29 per share, in the same period a year earlier.
More Bad News
The number of people clicking on AdWords rose just 9%–which was less than analysts expected–mostly in part due to Google’s efforts to filter out what it calls “accidental” clicks.
More bad news came from the revelation that the company struggled to maximize the revenue from its partnerships such as MySpace.
A Little Positive
On the good news side, revenue was up 51% to $4.83 billion (from $3.21 billion the previous year).
With talk of a pending recession, and Google failing to show growth with non-search ad channels, the company could face further reduction in its stock value over the coming months.