Shares of Google plunged sharply in Nasdaq, trading halted

Google Inc. shocked investors Thursday when it mistakenly published its earnings report with the Securities and Exchange Commission several hours earlier than planned, and the disappointing third-quarter results sparked a panic sell-off of the internet companys shares until trading was halted for more than two hours.

http://i.telegraph.co.uk/multimedia/archive/02357/google_2357100b.jpg
Shares of search engine giant Google plunged 8 percent, wiping out $20bn market cap in few hours

According to the report, Googles profits came in at $9.03 per share, more than $1.50 below analysts estimates. Earnings fell by more than 20 percent compared to the same time last year to just under $2.2 billion. The market punished Google by sending its shares down 8 percent, erasing nearly $20 billion worth of market value from the search giant in just few hours. That’s approximately the entire GDP of country like Brunei.

NASDAQ halted trading on Google shares in the middle of the trading day, stemming the further losses for Google at least temporarily. The companys stock had fallen more than $68, or more than 9 percent, from its opening price to $687.30 at the time the exchange stopped Googles shares from changing hands. After trading resumed around 3:20 p.m. ET, shares inched up to close at $695.42, a loss of 8 percent.

The mistaken filing surprised stock analysts, reporters and even Googles own public relations staff, which did not know about it at first. Google later blamed the error on R.R. Donnelley & Sons, the publisher, which it said had filed an early draft of the earnings without authorization.

http://i46.tinypic.com/w4ck6.png
Freefall in Google shares prior to being halted for 2 hours

R.R. Donnelley, a provider of disclosure management services and financial data report for publicly-listed companies, saw its shares dipped as much as 5.6 percent before recovering, said in a statement that it had started an investigation to determine how the error happened.

Google failed to meet expectations and then also mistakenly released in the middle of the day, Giri Cherukuri, a portfolio manager for Oakbrook Investments LLC, which manages $3 billion, said in a telephone interview. Google is a big company and on top of the fact that they missed estimates, they talked about advertising in the online world not doing as well as previously thought.

Speaking to analysts after the market closed on Thursday, Larry Page, chief executive, said: Im sorry for the scramble earlier today. Our printers said they pressed send on the release a bit early. The tech group asked Nasdaq to halt trading in its stock while the company worked to finalize the document.

http://cjo-cdn.com/sites/default/files/imagecache/superphoto/photos/new033111googleExpo.jpg
Fall in click CPC value dragged down Google earnings

The decline in profits stems in part, and most worryingly for Google, from a drop in the value of ads served on Google sites, as well as sites on Googles ad network. The company said its average cost-per-click had fallen by 15 percent compared to the third quarter of 2011 and by 3 percent compared to the second quarter of 2012. A half-billion dollars in losses at Googles Motorola Mobility division, where the company announced major job cuts earlier this year, also hurt the bottom line.

Revenues for the quarter, excluding payments to members of Googles ad network, came in at $11.3 billion, huge jump from the same time last year owing to the Motorola acquisition but still below analysts expectations.

Google’s plummeting shares brought down the entire technology sector. Apple Inc. slid 1.9 percent to $632.64 and International Business Machines Corp. dropped 2.8 percent to $194.96. AOL Inc. declined 1.9 percent to $36.36. Online-coupon provider Groupon Inc. slipped 3.4 percent to $4.91. Facebook Inc., the worlds most popular social-networking service, lost 4.6 percent to $18.98. Microsoft Corp. fell 2.4 percent to $28.79.

http://cdn.theatlanticwire.com/img/upload/2012/10/18/gooogs/large.jpg

The Asian stock markets are expected to open lower later after rallying for much of the week, with economic and earnings news also likely to weigh. Disappointing news from Google might likewise drag down the technology-heavy markets in Asia.

Source:

http://www.wired.com/business/2012/10/g … eak-early/

http://www.sfgate.com/business/bloomber … 961309.php

http://www.reuters.com/article/2012/10/ … G920121018

http://www.rttnews.com/1986330/soft-sta … gn=sitemap

http://www.nytimes.com/2012/10/19/techn … ted=2&_r=0

http://www.telegraph.co.uk/finance/9619 … iasco.html

http://www.ft.com/intl/cms/s/0/710240e6 … z29cZo5iY4

http://finance.yahoo.com/news/googles-m … 25533.html

A very bad news, I allocated some portion of my Adsense earnings to buy Google shares every month. 61 shares of Google at the moment, argh… But oh well…

Chill mevotex … tomorrow never dies … good luck ~~~ :lol: