Google's Disappointing Earnings: Hot Trends

NEW YORK ( TheStreet) -- Popular searches on the Internet include Google ( GOOG) as analysts cut price targets on the company's shares after the Internet search giant posted disappointing earnings.

On Thursday, Google's earnings report -- accidentally released hours ahead of schedule, revealed quarterly earnings that missed expectations for the second time in a year. The stock fell more than 9% when the third-quarter earnings report was released.

Google blamed the incident on the company that prints its financial documents. In a statement, a company spokeswoman said R.R. Donnelley filed Google's draft 8K earnings statement without authorization.

Google reported $14.1 billion in revenue for the quarter, a 45% increase from the same period a year earlier. Earnings per share came in at $9.03, below analyst expectations of $10.65.

CEO Larry Page called the quarter "strong," and noted Google's mobile ad revenue as a highlight of the quarter. He said Google's run rate for mobile will be $8 billion this year, compared to $2.5 billion last year. The increase is thanks to revenue from the sale of Google Play content and apps that are now included in the figure.

Some analysts have noted Google's mobile advertising revenue picking up as a positive for the company, despite cutting the price target.


Starbucks ( SBUX) is trending as the coffee chain has opened its first store in India.

The company's first store in India is located in southern Mumbai. In a joint venture with Tata Global Beverages, Starbucks plans to open two more stores in Mumbai next week -- one in the Taj Mahal Palace and another in the Oberoi hotel.

Starbucks' foray into the world's second-most populous nation comes as growth slows in the U.S. and as the company struggles in Europe amid a recession.


General Motors ( GM) is another popular search. The company is set to hire 3,000 Hewlett-Packard ( HPQ) employees an in effort to bring in more information technology.

The two companies have recently finalized a new multi-year software and services agreement that GM hopes will help accelerate the progress of its IT department and reduce the cost of IT operations. GM will hire 3,000 HP employees who have previously worked for the automaker as part of plan to reduce its reliance on outsourced contractors. GM has worked with HP to improve its software and data management systems in the past.

In addition to this hiring, the company said it plans to hire 1,500 new IT employees for its Michigan technology center and 500 for its center in Austin, Texas.

HP has been in the process of cutting thousands of jobs. The company said this year that it would cut 9,000 jobs in the U.S. as part of its plan to axe 8% of its work force.


The chatter on Main Street (a.k.a. Google, Yahoo! and other search sites) is always of interest to investors on Wall Street. Thus, each day, TheStreet compiles the stories that are trending on the Web, and highlights the news that could make stocks move.

-- Written by Brittany Umar.

Brittany joined TheStreet.com TV in November 2006 after completing a degree in Journalism and Media Studies at Rutgers College. Previously, Brittany interned at the local ABC affiliate in New York City WABC-TV 7 where she helped research and produce On Your Side, a popular consumer advocacy segment.

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