Google shares fell 7.5% on Friday as investors expressed disappointment in first quarter earnings that for most other companies would have been cause for celebration.
The company's stock price sank 45 cents to $550.31 on Friday, trending further downwards in after-hours trading.
The stock also declined 4.9% on Thursday after the results were published, but rebounded on Friday morning.
Google on Thursday reported a 38% increase in 1Q net profit to $1.96 billion, with revenue growing 23% to $6.77 billion.
But investors accustomed to blow-out results were disappointed in the figures, Reuterssaid. Analysts also expressed concern that Google had been unable to substantially increase its revenue in areas other than online search.
Another possible reason for the market's negative reaction is Google's intention to increase spending in the year ahead, MarketWatch said.
Google hired 786 new employees during the quarter, with expenses rising to $4.3 billion in 1Q10 from $3.6 billion in 1H09.
Google also said it intends to ramp up M&A activity in the near future.
Analysts were split in their opinion of the results, with some upgrading their forecast, and others cutting it. But nearly every broker covering the shares on Wall Street has price targets much higher than the current trading price.