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Google's shares drop nearly 10%

Google: profits are up but shares are down
Google: profits are up but shares are down

Google posted its Q2 results today, with the search engine revealing an impressive net profit increase of 35 per cent.

This was below the forecast expectations of Wall Street, however, wiping 10 per cent off of the company's market share over night.

The actual net profit Google procured over the second quarter of the year was $1.25bn (£629m). This produces a profit-per-share of $4.63. Unfortunately Wall Street was forecasting this to be $4.72.

Challenging economic environment

Speaking about his company's Q2 results, Google CEO Eric Schmidt explained: "Strong international growth as well as sustained traffic increases on Google's web properties propelled us to another strong quarter, despite a more challenging economic environment."

Despite the lower-than-expected profit, revenues from outside the US are up for the company, from 48 per cent to 52 per cent, which equates to £1.41bn year on year.

The UK does buck this trend, though; its profits were down one per cent to £390 million.