Google stock takes detour on the Street

Shares decline despite nearly triple 4Q profits

By BEN FRITZ

Billion-dollar-plus profits for the Internet's dominant search company weren't enough to impress Wall Street, as shares in Google actually declined slightly in after-hours trading following an earnings report that saw profits nearly triple to just over $1 billion.

Revenue was up 67% from a year ago to $3.21 billion as advertising revenue on Google's own search engine and its network of affiliates continued to grow at a very healthy clip.

Company paid out nearly $1 billion of that, however, to partner sites that host its ads.

For the full year in 2006, revenue rose 73% to $10.6 billion, and profits more than doubled to just over $3 billion.

It didn't provide guidance for the new year except to say it expects to "continue to make significant capital expenditures" as Google expands in a variety of businesses and international markets.

YouTube, the viral video site recently bought by Google, intends to start sharing revenue with users who submit videos, co-founder Chad Hurley said last weekend at the World Economic Forum. On a conference call with analysts, Google CEO Eric Schmidt confirmed the plans and said the program would start this year, though details haven't yet been worked out, according to MarketWatch.

Shares in Google were up 1% at $501.50 before earnings that seemed to slightly disappoint investors were announced.