The Early Release of Google Shares

GoogleInc. sGOOG-0. 72%quarterly stipend distinguish hit Wall Street much than three hours advance(prenominal) on Thursday due to a glitch. The bigger glitch was what the Internet giants results truly showed. Enlarge Image Shares of Google plunged by and by the companys third-quarter results missed expectations of strong harvest-feast, and inadvertently were released intumesce before the markets close. Does Googles notable revenue and earnings miss spell misgiving for the tech sector? Is this a buying opportunity in Google shares? pot Sena, Evercore managing director, joins The News Hub to discuss. characterization REUTERS. Among the litany of issues, the Internet search giants profits slid 20% from a course earlier to $2. 18 one thousand million, or $6. 53 a share. Revenue rosiness 45% to $14. 1 billion, thanks to the incorporation of Googles new Motorola hardware unit. moreover revenue excluding Motorola slowed for the fourth consecutive quarter, dipping to a growth r ate of 19% from rates of more than 20% for the past few quarters. At the same(p) while, Motorola in addition revealed a bigger-than-expected operating prejudice. The weak results, coupled with their unexpectedly early release from financial printerR.R. DonnelleyRRD-2. 56% Sons Co. , wiped $22 billion impinge on Googles market capitalization halfway through the day. Googles shares halted trading for a time before resuming. Google shares tumbled after the companys Q3 earning slipped out prematurely. WSJs John Letzing has details on Digits. Photo Getty Images. As of the 4 p. m. market close, the shares had recovered slightly to end at $695, flock $60. 49, or about 8% for the day. Still, the stock drop was a reversal for Google, which had experienced a run-up in its shares in novel months.The companys market capitalization had recently pulled even withMicrosoftCorp. MSFT+0. 44%for the first time, render by perceived good news about its online-ad business and missteps from rivals such asFacebookInc. FB+0. 33% At the crux of Googles profit slide was the growth rate of its biggest and most profitable revenue locomotive ads on its Web-search locomotive and video site YouTube. The growth rate of those ad sales has steadily dropped since mid-2011. In the latest quarter, sales of the ads rose 15%, but that was down from 39% growth a family ago. The growth rate for uch ads throw not because fightrs were buying fewer of the adsin fact, Google sold 33% more ads in the third quarter. But the average price paid by Web-search advertisers to Google per click dropped by 15% in the third quarter, Google give tongue to. The Early gain Release * HeardBuying Opportunity * Early Release a Human Error * Pending Larrys Quote * PendingLarry From Silent to Meme * Five Takeaways * Google Unveils $249 Chrome Laptop * sell Investors Cant Keep Up Driving the declining prices for the ads was the shift by advertisers toward nomadic ads, analysts said.That dislodge is hurting Google in the short term because mobile ads cost less(prenominal) than online ads viewed on desktop computers. Some industry experts, however, predict the price differential coefficient will be minimal by the end of next course. other Web companies are also grappling with the shift to mobile ads. Facebook, which reports earnings next week, has been racing to finish offer more mobile ad formats after earlier focusing more on online ads viewed on PCs. Google also faces toughening disputation in its core search market, which also has a knock-on effect on its search ads.People may be doing some of the most valuable caseful of Web searchesthose that relate to shoppingon sites likeAmazon. comInc. AMZN+0. 82% sort of than on Google, said Sameet Sinha, a stock analyst at B. Riley Co. Advertisers in the main are happy with Google. But Microsoft Corp. s Bing search engine, which also powers rubeYHOO+1. 51%Search, has been capturing market share over the past year, according to Aaron Goldman, important marketing officer of Kenshoo Ltd. , which helps companies likeExpediaInc. EXPE+1. 35%andSears HoldingCorp. SHLD+1. 4%advertise online. Were seeing the Yahoo/Bing network taking share because clients get a 30% better return on their investment than on Google, he said. Enlarge Image On an earnings call Thursday, Google Chief executive director Larry Page quickly moved to calm fears about mobile after saying he was sorry for the scramble involving the premature earnings release. Mr. Page, intercommunicate in a halting and hoarse voice, said there is large innovation in advertising, which I believe will help us monetize mobile queries more effectively than desktop today. He also noted there are more than 500 million devices ply by Googles mobile Android software and that come preloaded with Googles search engine and its other services. Google stands to take a bigger revenue cut from ads that bet on Android devices than it does fromAppleInc. sAAPL+1. 36%iPhone an d iPad. Mr. Page said Google was on pace to generate $8 billion a year from mobile devices, including advertising and sales of music, movies and apps on Android devices. A year ago, Google said it was on pace to generate $2. billion related to mobile devices, but that included only mobile ads, not content sales. Googles $12. 5 billion acquisition of Motorola also dragged on results. In its first in effect(p) quarter as part of Google, the handset maker generated $2. 58 billion in revenue, lower than the $2. 75 billion that Mr. Sinha expected. Motorola also had a loss of $527 million. Google has said that it plans to cut costs at the division, including by laying off 20% of Motorola staff, or 4,000 jobs. On the call Thursday, Google said Motorolas results would be rather variable in the coming quarters.Despite all the issues, some analysts who had been bullish on Google remained upbeat. While slight overall, Google numbers are not as hopeless as they initially appeared, wrote Doug Anmuth, a stock analyst atJ. P. Morgan pursueJPM-0. 35%& Co. , during Googles stock halt, adding that any investors who bought into the stock would be taking return of the sharp selloff. Google said it had $45. 7 billion in cash at the end of September, up from $43. 1 billion at the end of the atomic number 42 quarter. Its head count was 53,546, down from 54,604 three months earlier, including 17,428 employees at Motorola.