Google reports 27% increase in revenues but shares slide
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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Hide AdMicrosoft 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.