Google shares fell Thursday after quarterly earnings disappointed Wall Street and sharpened worries about the company’s ability to adapt its lucrative business model to increasingly popular mobile devices, where advertising rates are weak.
The company reported revenue of $14.1 billion during the third quarter, up 45 percent compared with the same period last year. But net income fell to $2.18 billion, a decline of 20 percent. Operating costs rose substantially.
The manner of the report’s release made matters worse on Wall Street: It appeared on a Securities and Exchange Web site at midday, several hours before the planned announcement, carrying what appeared to be placeholder text awaiting a quote from chief executive Larry Page.
The combination of the weak numbers and the timing error, which Google blamed on its financial printer, RR Donnelley, pushed the stock price down. Google suspended trading for several hours while it corrected and finalized the earnings report. The stock ended the day down 8 percent, at $695 per share.