Google, Microsoft shares slump as results disappoint

Shares of technology leaders Google and Microsoft stumbled in Friday morning trade after their quarterly results fell short of expectations. An announcement of a wider-than-expected loss by chipmaker Advanced Micro Devices (AMD), whose shares fell 11.3 per cent to $4.70, added to concerns about the US technology sector.

Internet search leader Google on Thursday reported a 35 per cent rise in net profit, but that was lower than most analysts forecast, and particularly disappointing since Wall Street had come to expect positive surprises every quarter.

Google officials noted problems managing its cash — now totaling $12.7 billion — amid interest rate uncertainty, a drain from recent acquisitions, and higher costs to hedge foreign currency risk as it expands overseas.

Google shares fell $48.33, or 9.06 per cent, to $485.11 by mid-morning trade. Microsoft shares fell $1.82, or 6.61 per cent, to $25.70 after the software maker posted a quarterly profit and outlook below Wall Street’s expectations, and cited “tough” economic conditions.