Google Bubble Popped as Shares Collapse on Earnings at 2006-02-06 23:45:40
Google Inc. (Nasdaq: GOOG) announced financial results for the quarter and year ended December 31, 2005. "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. The company reported revenues of $1.919 billion for the quarter ended December 31, 2005, an increase of 86% compared to the fourth quarter of 2004 and an increase of 22% compared to the third quarter of 2005. Yet, shares tumbled sixty-five points on the news because earnings fell well below the average estimate of $1.76, coming in at $1.54 per share. Sooner or later, the
Google phenomenon
had to come to a halt, as unrealistic expectations and a missed earnings report would eventually burst the Google bubble.
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