Google reports slower growth rates

Google reports slower growth rates

The world’s most popular search engine Google saw its shares tumbling down in the market after it reported that its sales gains might wane this quarter. This is perhaps the first time Google would be noticing a slower growth rate after watching quarters of impressive growth. The share value fell down as much as $20.62, or 6.6 percent, to $293.32 in Frankfurt. Earlier it had touched a record value of $313.94 in the U.S. yesterday.

On each of the earlier quarters since the company launched its IPO, the company had seen a minimum share value improvement of 5%. The company does not give out a sales forecast and warned that the market watchers should not assume that they would be achieving a 15 percent growth achieved this quarter last year.

Investors were more optimistic about the revenue growth from the company especially after it had reported fourfold growth in the second-quarter earnings. A senior market analyst John Tinker said: “You could see the stock sell off when they said that. The expectations were way, way high.” The revenue growth was 10% compared to the first quarter, which is the slowest for Google since Google went public in August.

Google reported sales of $1.38 billion and profit of $342.8 million or $1.19 a share. They are not the only one with reports of slowing growth as both their competitors Microsoft and Yahoo! along with Intel disappointed the market watchers with their quarterly results.