The amount Google managed to charge advertisers per click fell 8% - Google reported a 27% increase in revenues for the last three months of 2011, but even that was not good enough to meet Wall Street estimates, sending the shares tumbling.It reported 3-month revenues of $10.6bn (£6.8bn). Its net profit rose 6.4% to $2.7bn.
“Google had a really strong quarter ending a great year,” said chief executive Larry Page.
“I am super excited about the growth of Android, Gmail, and Google+, which now has 90 million users globally – well over double what I announced just three months ago.”
It came as fellow technology firms Microsoft and Intel also posted results for the same period.
Microsoft posted flat earnings of $6.62bn in the same quarter, seeing strong business demand for software and services.
Intel, the world’s largest chipmaker, posted a better-than-expected 6% rise in earnings to $3.36bn, even though floods in Thailand knocked out factories that produce hard drives and components.