Google reports 27% increase in revenues but shares slide

SEARCH engine powerhouse Google saw its shares tumble following disappointing figures while updates from IBM, Intel and Microsoft highlighted the volatile conditions facing the world’s big tech firms.

Google earned $2.7 billion (£1.8bn) in the final quarter of 2011, a rise of 6 per cent. But that was less than forecast, while an unexpected downturn in the prices the firm collects for advertising also spooked investors.

The subsequent sell-off wiped billions of dollars from the internet giant’s market value. Results from the other majors received a better response from Wall Street investors, but their figures failed to banish fears of softer revenues growth.

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Microsoft posted flat profits of $6.6bn in the quarter after benefiting from robust business demand for software and services and a decent holiday season for the Xbox games console.

Intel, the world’s largest chipmaker, enjoyed a better-than-expected 6 per cent rise in earnings to $3.7bn, even though floods in Thailand knocked out factories that produce hard drives and components.

IBM also beat expectations due to higher revenues from software and services. Profits were 4 per cent higher at $5.5bn.