Internet search giant Google has suffered a significant setback after its quarterly results for the month of October, November and December 2011 fell short of Wall Street's expectations as company CEO Larry Page announced the rather disappointing results, shares of the company tanked by around 9 per cent.
According to experts, the decline in Google's performance during the quarter can be attributed to a gradually declining search advertising rates. Sadly though, the company underperformed during the quarter both in terms of revenues and net profit.
Analysts keeping a close eye on the company's performance, pin pointed the 8 percent decline in cost per click figure as the main culprit behind the Mountain View based search behemoth's poor revenues during Q4.
"The major question is: Is this a one-time thing or is this something that is going to continue because the nature of the business has changed," Mayuresh Masurekar, an analyst at Colins Stewart, said in a statement, reports Reuters.
Meanwhile, Mr. Page has stated that the company is currently in the process of making some rather tough decisions regarding domains it should primarily focus on and that it will subsequently pull the plugs on the relatively unsuccessful services.