Google results hit record high but fail to impress investors

Google’s results hit a record high in the final quarter of 2011, with profits reaching USD2.71bn, up 6.7% from USD2.54bn in the same period in 2010, and revenues crossing the USD10bn mark for the first time. However, Google’s shares fell by almost 10% in after-hours trading as the firm, which usually outpaces forecasts, failed to meet analysts’ heightened expectations. Quarterly earnings per share of USD9.50 came in well short of the average USD10.49 that analysts expected, with costs up 30% year on year and the average price of cost per click (CPC) ads falling 8%. Despite failing to impress investors, revenues rose 25% to USD10.54bn, with CEO Larry Page highlighting Android, Gmail and Google+ as key areas for growth in 2012.


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