An earlier- and lower-than-expected earnings release followed by a brief halt in trading ended with Google (GOOG) shares plunging by about 9 percent yesterday. The tech giant missed several key consensus estimates on Wall Street, including net revenue gains from last year that could be blamed on a rise in costs, tepid ad revenue and dismal performance by Motorola Mobility, which Google acquired back in May.
The drop in Google shares hasn’t helped the rest of Wall Street yesterday, or even today as investors began trading on the inauspicious 25th anniversary of “Black Monday” that resulted in the largest single-day stock drop in history.
Should Google be worried? Yes, according to Roger McNamee, founding partner of the venture capital firm Elevation Partners. At a Paley Center for Media event last year, McNamee claimed that a switch from internet search to more of a reliance on mobile apps on devices like the iPhone could doom the company.