SAN FRANCISCO (Reuters) - Google Inc (NasdaqGS:GOOG - News) posted a 35 percent rise in quarterly net profit, missing Wall Street's consensus forecast, showing the Internet leader may be suffering from a weakening global economy as rivals have.
Shares of Google fell to $477, a decline of more than 10 percent, from a Nasdaq close of $533.44.
Net income for the second quarter rose to $1.25 billion, or $3.92 per diluted share, compared with the year-earlier quarter's $925 million, or $2.93 per diluted share, when an unexpected jump in expenses hit results.
Gross revenue rose 39 percent to $5.37 billion.
Excluding stock-based compensation costs, the company reported a profit of $4.63 per share -- below what Wall Street had forecast.
Analysts were expecting a net profit, on average, of $4.00 per share for the latest quarter, according to Reuters Estimates. Excluding stock option expenses, Wall Street was looking for an average second-quarter profit of $4.72 a share.
Revenue was expected to grow 39 percent, on average, to $5.37 billion according to analysts tracked by Reuters Estimates. Forecasts ranged from $5.16 billion to $5.62 billion, representing growth of 33 percent to 45 percent.
(Reporting by Eric Auchard, with additional reporting by Paul Thomasch; Editing by Braden Reddall)
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