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Google disappointed investors and shares collapsed by 10%

The market capitalization of Internet giant Google has collapsed by 10% to 575 USD per share after the announcement of the results of the company for the last quarter of 2011. The reason is that investors were disappointed despite improved indicators for growth and profit of the company. Google's profit for the fourth quarter of 2011 was 2.71 billion USD or 8.22 USD per share. This is 6 percent more than achieved a year earlier 2.54 billion USD or 7.81 USD per share. If you exclude some one-off effects, Google's profit would be 9.50 USD per share. Expectations for this indicator were to be reached a level of 10.50 USD per share. The revenues of the Internet company for the period were 8.13 billion USD, which is over 27% achieved more than a year earlier 6.37 billion USD. But that was not enough to cause optimistic mood among investors who were expecting revenue of 8.4 billion USD. Serious obstacle to the Google results were found problems in Europe. The company explained that they worked actively to provide more opportunities for our clients in terms of ad formats. Calculations indicate that Google has a lower income as a cost per click of ads broadcast during the fourth quarter. The search advertising in Europe grew by 14 percent, well below the growth recorded for the period from 22 per cent annually in the U.S.. Data are the company's digital marketing IngnitionOne. disappointed
Income from paid clicks rose by 34 percent annually, far exceeding what is anticipated to increase by 24 per cent. With cost per click, however, a decline of 8% expected an increase of 3.2 percent. In the fourth quarter capital expenditures were EUR 951 million dollars, and it is estimated more than 813 million USD.