A nearly 4% drop in shares of Google (NasdaqGS: GOOG) on Monday weighed on exchange traded funds that invest in Nasdaq-listed stocks. The tech giant’s shares was failing after Motorola Mobility (NYSE: MMI), which Google is in a deal to acquire, preannounced lackluster quarterly revenue.
Motorola Mobility after Friday’s closing bell estimated its fourth-quarter revenue totaled $3.4 billion, below consensus estimates. It expects “modest profitability” for the quarter and said its results were hurt by the increased competitive environment in the mobile device business.
Over the summer, Google announced a deal to buy Motorola Mobility for $12.5 billion. [How Much Bounce Left in S&P 500 ETFs?]
“Wall Street is beginning to fret about Google becoming hitched to a declining mobile-hardware company,” WSJ.com’s MarketBeat reported.
Google is the third-largest holding in PowerShares QQQ (NasdaqGM: QQQ) at 6.4% of assets. The Nasdaq-100 ETF was down 0.3% on Monday to trail the S&P 500 and Dow. Google shares slipped 3.5%.
PowerShares QQQ
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