The shock fall in the price of shares for Google was so large that it led to Wall Street itself being shaken.
Quarterly results from Google were released early by the company by accident which sent their share prices crashing as those on Wall Street learnt how Google had recorded a drop in profits of 20 percent.
The details of the profits from Google had been predicted to be disclosed after the close of business in Wall Street but they came early leading to the problems with the share prices.
The early release of the Google profit details has been blamed on it financial printing firm RR Donnelley according to press reports.
The unexpected press release was clearly unfinished as it finished with the line “PENDING LARRY QUOTE” referring to the need for the results to be followed by a quote on the subject by the Google chief executive Larry Page.
Larry Page told press: “I’m sorry for the scramble earlier today. As our printers have said, they hit send on the release just a bit early.”
While Larry Page may have been taking the situation in his stride investors in the company were probably not so relaxed about the entire debacle.
Investors had been hoping for better results from Google and they were well below the expectations in Silicon Valley.
The results showed that the company was down on net income by 20 percent to the tune of 2.18 billion dollars.
The fall in profits has been put down to Google buying up Motorola Mobility hardware for 12.5 billion dollars earlier in the quarter while the average cost per click has also declined for the fourth consecutive quarter.
With the poor results on display for all to see a huge sell of stocks from Google quickly began and saw around nine percent of the companies total market value being wiped off in moments leading to trading being suspended as the shares went into free fall.
The reactions of stock market traders reflected feelings of disappointment in Google, firstly for the poor results and then for the error in the release of the information.
Joe Saluzzi of Themis Trading said to Reuters: “You can’t make those mistakes anymore…it’s obvious this was some sort of mistake that went out to early. Mistake or not the earnings are earnings, the problem is when this happens in the middle of the day, there is no time for analysts questions and for an evaluation.”
Sameet Sinha from B Riley told Reuters: “I don’t think anybody saw this. The only conclusion I can look at is – search is happening more and more outside Google.”
Google will now have to work to produce some stunning figures for the next quarter of business to be able to pull back from this and to reassure the markets around the world that Google is still on top.