Google Inc's shares fell 10% in after-hours trading yesterday after the internet search giant missed Wall Street's revenue targets.
Google's net revenue, which excludes fees shared with partner websites, was $US8.13 billion ($NZ10.15 billion) in the fourth quarter, versus $US6.37 billion in the previous corresponding period (pcp). Analysts polled by Thomson Reuters I/B/E/S were looking for net revenue of $US8.4 billion.
The revenue shortfall represents a rare miss for Google, which has exceeded Wall Street's revenue targets for the past eight consecutive quarters.
The amount of clicks on Google's search advertisements increased sharply during the last three months of the year, but the amount of money Google charges advertisers for the advertisements decreased 8% from the third quarter and 8% from the pcp.
Google's operating expenses increased to 32% of revenue during the fourth quarter, versus 30% of revenue at this time last year.
Google said yesterday it earned $US2.71 billion, or $US8.22 per share, in the fourth quarter, compared with $US2.54 billion, or $US7.81 per share, in the pcp.
Excluding certain items, Google said it earned $US9.50 per share.
Shares of Google were down 10% at $US575 in trading yesterday.
