Google stock dives as company misses profit target, earns $2.2 billion on $14.1 billion revenue

Google’s stock dropped $68, or 9% of its value, after its Q3 earnings report was leaked to the web earlier today. Expected to be released at EoD today, the company’s SEC filing was placed on its website, incomplete, with a label “PENDING LARRY QUOTE”.

The company’s revenue was up 45% from the same quarter a year ago to $14.1 billion, but net income dropped significantly from this time last year to $2.18 billion. The discrepancy can mostly be blamed on a net loss from Motorola Mobility, which was acquired earlier this year for $12.5 billion. The company also paid out a significant portion to former staff who were laid off; according to the filing, over 1,000 people were let go between June 30th and September 30th.

Motorola’s operating loss was $527 million, $505 million of which was attributable to the mobile segment. Despite higher revenues of $2.5 billion, Motorola was not able to turn a profit this quarter as it continued to struggle to gain market share against Samsung in the Android space. This should turn around as it launches a new flagship product in the RAZR HD but Google seems to be unsure of how to right the ship.

The company announced today that it is launching its first ARM-based Chromebook laptop, with a Cortex-A15 based Samsung Exynos 5 Dual 5230 chip. The device is expected to retail for $249 in the U.S. and should net up to 6.5 hours of battery life. The 11.6-inch laptop has a resolution of 1366×768, is fanless and weighs 2.4lbs. It’s also 0.8-inches thick and comes with 16GB internal storage, 100GB Google Drive cloud storage and access to Google Now using Chrome OS.

So that’s one piece of good news. Despite lower profit, Google still had a pretty huge quarter, and are expected to launch a new Nexus device (or several) in the coming weeks.

Source: SEC, TheNextWeb, Engadget