Google's shares took a 9 percent hit, dropping to $687.30 on Thursday as news the company wouldn't make revenue or earnings expectations hit the market.
The bad news came a bit earlier than expected, as Google's quarterly financial report was released ahead of schedule and without proper authorization by the company's financial printer RR Donnelley.
In response, all trading on NASDAQ pertaining to Google's stock was halted.
"Earlier this morning RR Donnelley, the financial printer, informed us that they had filed our draft 8K earnings statement without authorization," said a statement from Google.
"We have ceased trading on NASDAQ while we work to finalize the document. Once it's finalized we will release our earnings, resume trading on NASDAQ and hold our earnings call as normal at 1:30 PM PT."
Analysts not surprised
Though the early peek at Google's financials came as a bit of a surprise, analysts weren't shocked by the quarterly results.
Speaking to Reuters, BCG analyst Colin Gillis shared his perspective on why Google took such a hit Thursday afternoon, and pointed the blame at the mobile market.
"Click prices declined for the fourth consecutive quarter after rising for eight consecutive quarters before then. That's a negative. This is the mobile problem."
"The other bit is the Motorola millstone had been ignored by the market, and - boom - now you've got weak revenue from Motorola. When you acquire a business and you're about to whack all kinds of people and close offices, you know what happens to the employees? They take their eye off the ball. Sales are down."
Google was expected to close the quarter with shares improving at $10.65 each, but instead the final numbers showed only a $9.03 increase.
Wall Street expected Google's overall revenue earnings were to approach $11.9 billion, but the third-quarter results showed only $11.3 billion in earnings.
What's next?
Google is scheduled to host an event in New York on Oct. 29, where it's expected the company will announce new Android devices.
With Apple potentially unveiling the Nexus 7 competitor, the iPad Mini, on Oct. 23, Google will have its work cut out for it if the company hopes to bounce back from a disappointing third quarter.
Releasing a slate of new phones like the rumored LG Nexus 4 and HTC Nexus 5 might help, as could a 32GB Nexus 7 or the 10-inch Nexus 10 tablet.
Google isn't going anywhere any time soon. However, it will be worth monitoring the company's progress during the fourth quarter to see if it can turn things around headed into 2013.
Source : techradar[dot]com
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