Google CFO notes slower growth, and stock plunges

SAN FRANCISCO -- Google Inc.'s shares plummeted by as much as 13 percent yesterday after the company's chief financial officer raised the specter of slower earnings growth -- a remark that soured recent investor enthusiasm that had been building for the Internet's leading search engine. The latest in a series of abrupt downturns followed chief financial officer George Reyes's answer to a question in an investor conference.

After hailing the results of an 18-month effort to boost advertising revenue, Reyes predicted it will be increasingly difficult for Google to maintain its rapid growth pace. ''Most of what's left is just organic growth, which means you have to find ways to grow your traffic," he said. ''Clearly, our growth rates are slowing, and you see that each and every quarter."

Reyes later put a more positive spin on his remarks. ''I am not turning bearish at all," he said. ''I think we have a lot of growth ahead of us. I think it's just a question of at what rate." Google's shares plunged by as much as 13 percent, then recovered, shedding $27.76, or 7.1 percent, to close at $362.62. The stock peaked at $475.11 in January.