Google put forth a press release today announcing its 2005 fourth quarter results. Despite positive earnings, stock plummeted.
“We are very pleased with our results for the fourth quarter as we achieved excellent performance across our businesses,” said Eric Schmidt, CEO of Google. “We generated significant revenue growth in our core search and advertising business, driven by continued strength in traffic and monetization. We will continue to invest significantly as we develop innovative new products and as we extend our core technologies to new user access points and to different channels.”
For Q4, 2005, Google reported total revenues of $1.919 billion, an 86 percent increase over Q4, 2004, and a 22 percent increase over Q3, 2005. Its net income was $372 million, up from $204 million the year before.
Despite this, Google stocks dropped after revenues failed to meet analyst expectations, combined with the Federal Reserve’s announcement of an interest rate increase to curb inflation. Google stock fell to $364.49, dropping 15.8 percent.























