Google Stock Drops With 3Q Report, Takes Facebook Down With It

By Justin Lafferty 

The stock value of Google plummeted after its preliminary third-quarter report showed that income dipped 20 percent while costs rose. This news sent a ripple effect throughout other Web giants on Wall Street, as the share prices of Facebook and Yahoo fell Thursday, as well.

Google’s stock fell nearly 10 percent Thursday, as a leaked third-quarter report indicated a softer market for online advertising. According to The Wall Street Journal, the average cost that advertisers paid Google per click fell 15 percent from last year, and 3 percent from the second quarter.

In a corresponding move, Facebook’s stock dropped roughly 4.5 percent Thursday and as of 11:30 a.m., PT, it was down below $19 per share.

Google’s drop will only add intrigue to Facebook’s third-quarter report, which will be revealed Tuesday, Oct. 23. Some analysts feel that Facebook’s revenues will improve because of the company’s efforts to attract more money, but so far, the social network has been predictably tight-lipped about the upcoming financial figures.

Facebook’s third-quarter report will be released at 2 p.m. PT (5 p.m. ET), Oct. 23. A live webcast, as well as complete financial reports, will be found at that time on the Facebook Investor Relations website. AllFacebook will also have complete coverage.

Readers: What do you think Facebook’s third-quarter report will show?

Image courtesy of Shutterstock. Stock graph courtesy of MarketWatch.