Google Inc.'s earnings growth decelerated dramatically in the second quarter as the Internet search leader spent more money hiring new employees and acquiring online content, jolting investors who had been betting on higher profits.
For most companies, the 28 percent earnings increase Google reported Thursday would be a cause for celebration. But the Mountain View-based company's quarterly profits had never before improved by less than 60 percent, so Wall Street viewed Google's latest results as a major letdown.
The distress caused Google shares to plunge more than 7 percent.
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Google's profit falls short, shares drop - Yahoo! News