Google Disappoints the Street

On news of Q4 results, the Web search giant's executives admit to issues with advertising on social networks, and defend R&D expenses
Eric Schmidt, Google chairman and CEO. Pierre Verdy/AFP/Getty Images

It's not the economy, stupid. That was the message from one Google (GOOG) executive after another on Jan. 31 as they tried to explain why the company's fourth-quarter results failed to match Wall Street expectations. "We have not yet seen any negative impact from the rumors of a possible recession," Google CEO Eric Schmidt said during a conference call after the figures were released. "We are quite optimistic about '08, and our model continues to work very well," he added.

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