Google Revenue Slowing, Shares Fall

Investors expect a lot from Google. That was especially evident on Thursday when Google’s shares dropped handily even though the company posted their highest quarterly net income in their history.

Prior to the release of Google’s second quarter report, Google shares were at around $442. Once the report became public, Google shares dropped to around $428 rather quickly.

Google’s net income for the second quarter of 2009 was approximately $1.5 billion. Compared to the second quarter of 2008, that number represents an almost 20% increase.

The number that investors didn’t like was the company’s revenue growth. With revenue of $5.52 billion in the second quarter, Google only saw a 3% raise from last year.

The reason why Google was able to post such a high net income is being credited to Google cutting some of the fat out of their budget. Google also saved money by trimming their workforce.

Representatives from Google point to the poor economy as the reason why their numbers weren’t even more impressive. Keep an eye on Google shares to see if investors believe that explanation.

Google (Image: Flickr)