An error by printing firm RR Donnelley, who mistakenly published Google’s third-quarter results early, has wiped $19bn off the value of Google, seeing Google’s shares plummet a massive 9 percent before trade was suspended, yesterday.
Trading in Google shares was suspended for 2.5 hours after the Googles third-quarter results had been filed early by RR Donnelley, without Google’s authorisation.
In a statement released by Google they explained that ” RR Donnelley, the financial printer, informed us that they had filed our draft 8K earnings statement without authorisation.”
Google’s third-quarter results which appeared early yesterday spooked investors and revealed that Googles profits fell 20% from a year earlier to $2.18bn (£1.35bn) – below analysts’ expectations. Ben Thompson Business reporter, New York explains why the early release is damaging:
“Largely because it doesn’t give Google the opportunity to explain the figures or manage market expectations. In normal circumstances, earnings reports come with a whole series of conference calls and briefings between the firm’s management and investors, traders and journalists. Without the briefings, the numbers are left to speak for themselves.”
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