Google 4th-Qtr. Profit Nearly Doubles to $372.2M but Misses Estimates; Shares Drop 15.5 Percent

SAN FRANCISCO (AP) -- Google Inc.'s rapid financial growth decelerated in the fourth quarter as the online search leader's profit fell below analyst expectation for the first time since its August 2004 initial public offering. The news rattled previously bullish investors, causing Google's stock price to plunge by more than 15 percent.

The Mountain View, Calif-based company said Tuesday that it earned $372.2 million, or $1.22 per share, for the final three months of 2005. That represented an 82 percent increase from net income of $204.1 million, or 71 cents per share, in the previous year.

If not for a donation to launch its charitable foundation and stock compensation expenses, Google said it would have earned $1.54 per share. That missed the average estimate of $1.76 per share among 31 analysts surveyed by Thomson Financial.

Google released its results after the stock market closed Tuesday. Company shares plunged $66.93 -- 15.5 percent -- in after-hours trading after gaining $5.84 to close at $432.66 Tuesday on the Nasdaq Stock Market. The downturn wiped out roughly $20 billion in shareholder wealth.