[geekerati]

Google's rapid financial growth decelerated in the fourth quarter as the online search engine leader's profit fell below analyst expectations for the first time since its August 2004 initial public offering.

Tuesday's disappointing financial report rattled previously bullish investors, causing Google's stock price to plunge by more than 12 percent in a backlash that wiped out $16 billion in shareholder wealth.

The Mountain View, California, company said its net income nearly doubled from the previous year to $372.2 million during the final three months of 2005.

For most companies, that kind of stellar growth is a reason to celebrate. But investors have become accustomed to much bigger things from Google, which had been consistently topping analyst expectations during a streak of prosperity that more than quadrupled its market value in less than 18 months.

This time around, Google fell woefully short of clearing the earnings hurdle set by industry analyst. Google's quarterly profit had at least doubled in each of those quarters, too, so even the 82 percent increase reported Tuesday looked relatively modest.

Google released its results after the stock market closed Tuesday. Company shares plummeted $53.65 -- 12.4 percent -- in after-hours trading after gaining $5.84 to close at $432.66 Tuesday on the Nasdaq Stock Market. The shares had fallen by as much as 19 percent earlier.

The amount of shareholder wealth shed by Google during extended trading exceeds the current market value of General Motors.

Source/read more