Google Earnings Down 20%, Trading of Stock Suspended

Even search giants aren’t immune to QE-induced downturns. 

Trading of Google Inc (GOOG) was abruptly suspended at 1:30pm when an earnings report, much below market expectations, was mistakenly released early.

Google Inc reported third-quarter results that missed Wall Street expectations, sending shares down as much as 10.5 percent and weighing on broader markets after the release came unexpectedly early.

The plunge wiped nearly $26 billion off the company’s market capitalization.

In a statement, Google said: 

“Earlier this morning RR Donnelley, the financial printer, informed us that they had filed our draft 8K earnings statement without authorization.
We have ceased trading on Nasdaq while we work to finalize the document. Once it’s finalised we will release our earnings, resume trading on Nasdaq and hold our earnings call as normal at 1:30 PST.”

Third-quarter profits fell 20% of a year earlier to $2.18bn (£1.35bn) and below analysts’ expectations. Net revenue rose to $11.3 billion from $7.5 billion, but was still below forecasts.

The slide in Google’s share price took the company’s market value back down below that of Microsoft, which it had overtaken earlier this month.