Google Drops 10% in after-hours Trading, Ouch

Google dropped 10% after hours to $479.70 according to WSJ.

Google Inc.'s second-quarter net income rose 35%, but the results disappointed investors and shares fell nearly 10% in after-hours trading.

"Strong international growth as well as sustained traffic increases on Google's Web properties propelled us to another strong quarter, despite a more challenging economic environment," said Chief Executive Eric Schmidt.

What to expect from other major companies -- including analyst forecasts for profit and revenue -- as they report quarterly earnings

The search-engine giant reported net income of $1.25 billion, or $3.92 a share, compared with $925.1 million, or $2.93 a share, a year earlier. Net income fell from $1.31 billion, or $4.12 a share, in the first quarter.

In Google’s Press Release.  Note the mention of data center operational expenses.

Other Cost of Revenues - Other cost of revenues, which is comprised primarily of data center operational expenses, amortization of intangible assets, credit card processing charges as well as content acquisition costs, increased to $674 million, or 13% of revenues, in the second quarter of 2008, compared to $624 million, or 12% of revenues, in the first quarter of 2008.