Google accidentally posted its third quarter earnings results early today. The search engine giant’s shares lost $68, or more than nine percent, to trade at $687.30 on the NASDAQ earlier today.
At 1:30 p.m., Google issued a statement that supports the theory that the release was posted inadvertently, saying the company's financial printer, R. R. Donnelly, "filed our draft 8K earnings statement without authorization."
This isn’t just news that affects Google. Facebook tanked after the premature release.
Image via Business Insider
The earnings report show that Google’s ad revenue rose 19 percent to $11.5 billion and total revenues, including Motorola Mobility, were $14.1 billion. Although Google's earnings release shows it is still getting increased ad sales, it's making up in volume what it's losing in profit. The money it gets for each click is declining overall.
“It is not surprising that with Google’s price per clicks going down that Facebook, who just got a bounce from a nice increase in mobile ads, which has been a sore spot with investors, is seeing its stock punished too,” said Peter Bernstein, senior editor, TMC. “Silicon Valley, where both companies are headquartered, is not a happy valley today.”
The money Google gets for each click is declining because of its massive mobile ad business. According to Business Insider, mobile platforms have added a vast new supply of cheap inventory, and when supply outstrips demand, prices fall. The growth in aggregate paid clicks is declining and the price per click is declining too.
It was noted in the premature Google posting that space was left “PENDING LARRY QUOTE.” This refers to the typical explanation of the results that will come from Google CEO Larry Page. Not only is he going to have to explain the overall results, but he is going to have to discuss what happens next quarter.
Stay tuned to TechZone 360 as Google hosts its earnings call at 4:30 this afternoon.
TechZone360 Web Editor
The Amazon Echo, not the Apple Watch, became the last iPod-like product largely because of a far more accessible price point, a more compelling name, …
Apple's 13 percent sales decline and subsequent stock price drop this week has lead to the usual crazy talk about how to "fix" the company. Vivek Wadh…
Over the past 13 years, Apple has been one of the most successful companies in the world of tech, posting sales growths in 51 straight quarters. That …
Travel may be starting to make a bit of a comeback, as a new report suggests that shared-space providers like Airbnb and WeWork are on the rise.
One of the great downsides to having a lot of content in any one place is that, after a while, it starts looking downright pointless to add more.