Wall Street Gives Larry Page A Big -1
April 17, 2011 at 22:21 PM EDT
Google's first quarterly earnings with Larry Page back at the helm as CEO of Google didn't go so well last Thursday. Revenues did rise an impressive 27 percent, but expenses grew an even larger 34 percent, partly due to across-the-board salary raises and ballooning talent retention packages . The next day, Google's stock took a nosedive, closing on Friday at $530, almost $50 below its close on Thursday before the earnings call. More than $15 billion of Google's market value, or about 8 percent, was wiped out, the biggest single-day drop since 2008. This reaction was not solely because Google missed Wall Street consensus earnings estimates by a three cents. It was also because of Larry Page . Wall Street investors fear Larry Page and the unknown changes he may bring to the company, which up until now has been one of the stock market's most consistent earners. Page's performance on the earnings call, or rather lack thereof, compounded these fears.