Early Google Earnings Report Affects Facebook

By Rachel Ramsey October 18, 2012

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.

Edited by Rich Steeves

TechZone360 Web Editor

Related Articles

Top Cyber Monday Tech Deals

By: Kyle Piscioniere    11/30/2015

Here's some big news: over Thanksgiving weekend, more shoppers went online than to retail stores. This information comes before we see Cyber Monday da…

Read More

Jeff Bezos, Elon Musk Square Off on Rocket Firsts

By: Doug Mohney    11/25/2015

On Monday, November 23, Blue Origin successfully flew the first fully reusable rocket into space, giving the company first bragging rights. Founder Je…

Read More

Autonomous Car Technology Takes New Leap Forward With Ford, Uber

By: Larry Alton    11/24/2015

The age of the self-driving car is nearly upon us, or at least that's what major technology and automotive companies are hoping. There have been major…

Read More

Unusual but Fun Tech Ideas for 2015

By: Rob Enderle    11/24/2015

Well, it's the week of the big sales, and many of us are planning to buy that special someone a special something. I figured I'd join my peers and poi…

Read More

Locus Telecommunications is Challenging the FCC's Authority, Claiming Due Process Violations

By: Special Guest    11/24/2015

One of a handful of prepaid calling card companies slapped with a $5 million fine by the Federal Communications Commission (FCC or Commission) for its…

Read More