Media, including Reuters, report that the drop in income for Google comes on the back of the company’s struggle to turn around loss-making cellphone maker Motorola Mobility that it bought for $12.5 billion. Reuters said Google had reported a 20 percent dive in net income to $2.18 billion, “missing both revenue and earnings.”
The surprise announcement of Google’s results, which had been expected after the market closed, pushed its shares down 9 percent to $687.30 before trading was halted by Nasdaq.
Google has said it is working now to finalise the statement before releasing it to the market.
Reuters said that, excluding certain items, Google had earned $9.03 a share, “vastly underperforming the $10.65 analysts had expected, on average.”