[notxtra]

There were signs of a slowdown at Google after it reported disappointing profits in its most recent quarter.

Google's profits were up 17% to $1.21bn (£608m) for the three months to the end of December.

Some analysts had been hoping for stronger profit growth and its shares fell sharply in after hours trading.

Google's shares have fallen more than 18% so far this year on concerns that the slowing US economy will cause advertisers to cut back on spending.

"Disappointing"

Investors have become used to Google reporting extremely strong profit growth.

Analysts say the latest quarter shows that even Google is not immune to an economic slowdown in the US.

"I think its essentially an in-line quarter for Google which, given the history of beating expectations is disappointing Wall Street.

"There was a slight softness in revenue which perhaps portends softness going forward due to the US economy," said Clayton Moran, senior vice president of the Stanford Group.

Google's sales for the quarter were $3.39bn, up 52% but not as much as analysts were hoping.




Coutesy of BBC News.

[Zubair]

Google Inc. on Thursday reported fourth quarter net income of $1.21 billion, or $3.79 a share, up from the $1.03 billion, or $3.29 cents a share in the same period last year.

The Mountain View-based online giant (NASDAQ:GOOG) had revenue of $4.83 billion, a 51 percent increase over the year-ago quarter's $3.21 billion.

Excluding items, the company said it would have earned $4.43 a share from $3.18 a share last year.

Net revenue -- excluding payments made to other sites to acquire Internet traffic -- was $3.39 billion from $2.23 billion.

Analysts had expected, on average, earnings of $4.44 a share on $3.45 billion revenue, and investors showed their disappointment, sending the stock down about 7 percent in late-day trading.

[MirzaKamran]

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