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Google shares fall after poor first quarter
Business digest: Lower than expected profits call company's strategy into question
Disappointing first-quarter profits have led to a fall in Google's share price and growing concern about the company's aggressive spending strategy.
The American internet giant announced an 18 per cent rise in first quarter profits, lower than predicted by analysts, with total earnings of $2.3bn ($7.04 a share) up to March 31. The news led to a dramatic day on the stock market as the company's shares shed 5 per cent of their value, falling by $27.74 to $550.77 in extended trading.
The poor results have called into question Google's planned recruitment drive. The company has a commitment to hire at least 6,200 workers this year, the highest number in Google's 13-year history.
The news has come at a bad time for Larry Page, the company's co-founder, who replaced Eric Schmidt as CEO after the quarter ended. Yet Page remained upbeat, saying, "I'm very excited about Google and our momentum, and I'm very, very optimistic about our future."
Read a full report in the Guardian. ·
