Google (NasdaqGS: GOOG) shares were set to weigh on technology and Internet exchange traded funds (ETFs) on Friday. The stock was down more than 5% before the bell after the company reported weaker-than-expected quarterly results.
Google’s profit and revenue increased, but investors were concerned about a rise in spending at the search engine and advertising giant.
Google shares dropped in after-hours trading Thursday as the earnings miss fueled anxiety that Google co-founder Larry Page, who returned as chief executive two weeks ago, will not meet Wall Street expectations as consistently as his predecessor, longtime CEO Eric Schmidt, reports Jessica Guynn for The Los Angeles Times.
“Google reported strong top-line growth with net revenue up 29% year-over-year,” said analysts at Benchmark Co. in a research note Friday.
“However, expenses outpaced revenue growth with total operating expense up 47% year-over-year. Under new CEO Larry Page, Google is investing heavily to drive future growth, with an emphasis on social,” they added.