The share price of Google fell in after-hours trading last night (April 17th) following the release of the latest financial results by the technology company.
It was revealed by Google that its profits for the first quarter of the year were $3.45 billion (£2.05 billion), which was a rise of three per cent but did not meet the expectations of analysts.
Google's chief executive Larry Page described the company's performance over the first quarter of the year as "great", although investors were less impressed with the set of financial results.
In a statement, Mr Page said: "We got lots of product improvements done, especially on mobile. I'm also excited with progress on our emerging businesses."
Google revealed that its consolidated revenues for the first quarter of the year stood at $15.42 billion, while shares of Class C capital stock were issued as a dividend to its stockholders on April 2nd. The rise in revenues stood at almost 20 per cent, but this did not convince investors.
The company said: "Except for the number of authorised shares and par value, all references to share and per share amounts have been retroactively restated for all prior periods shown to reflect the stock split, which was effected in the form of a stock dividend."
Although the share price of the search engine firm was up by 3.75 per cent on the Nasdaq yesterday, those gains were almost totally erased in after-hours trading in the US, when stocks dipped back down by 3.15 per cent by the close.
CNet technology analyst Larry Magid explained Google is going to have to make sure some of its more recent "crazy ideas" – such as Google Glass – turn out to be profitable. He told the BBC: "Their core business, what really brings in the money, that's beginning to get a little bit dodgy for them."
Most of Google's cash still comes from advertising revenue via its search engine, but the company has been diversifying into areas such as mobile phones in the last few years.
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