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Thursday, July 17, 2008
Summary box: Google gives give new reason to worry
By The Associated Press
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Do you think Senator Obama's pick of Senator Biden will help him in the election?

RED FLAG: Although its growth rate remains impressive, Google's earnings missed analyst estimates and CEO Eric Schmidt acknowledged the economic climate is "challenging."

REACTION: Google shares shed more than 7 percent as investors realized the Internet search leader may not be immune to effects of the ailing U.S. economy.

RAMIFICATIONS: This could foreshadow even worse news from Yahoo Inc., which ranks a distant second to Google in Internet advertising and needs to post a big second quarter next Tuesday to fend off a shareholder rebellion being led by activist investor Carl Icahn.
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