Search giant Google has managed to beat bleak market forecasts and has posted revenues of $5.7 billion in its fourth quarter which marked an 18 percent increase over the last quarter.
Incidentally in spite of the relatively positive results, its revenue growth has come down below 30 percent for the first time since 2004 when it went public.
Google took exceptional write-downs on investments in AOL and Wireless venture Clearwire worth a whopping $1.09 billion, bringing the company's profit after tax to $382.4 million in Q4, a 68 percent decline over the same period one year before.
The fourth quarter results announced by Google however failed to impress the stock markets with its stock slipping nearly 3 percent in extended trading over doubts whether the company could keep on posting strong growth figures as the recession deepens.
In order to counter the recession, Google has been engaging in many prudent cost cuts and some of these include reducing its capital spending by as much as 46 percent over last year and it has also reportedly cut thousands of temporary workers.
Though some analysts are expressing caution over prospects of Google in coming months, most analysts believe that the company will perform better than its peers.
Expressing a positive outlook for Google, Derek Brown, analyst with Cantor Fitzgerald
Mentioned “It's clear that macro-economic challenges continue to rob Google of growth, but it seems equally clear that the company continues to make headway in this market, and take share in this market,”
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Google is not immune to the current economic and the company is likely to take a battering from investors even though the whole technology segment will be suffering anyway. Due to its exposure in the advertising market, Google massive slip in after hours trading (it was down by 2.67 percent) means that the company's shares price has now gone down under $300 again
(The National Business Review)
Google exceeds 4Q forecasts, though earnings drop
Google earnings drop 68% in fourth quarter