Earnings | Google beats forecasts, but stock dives

In an important barometer of online advertising spending, the Web's gorilla just announced that first-quarter profit and sales exceeded Wall Street's expectations. That good news comes less than 24 hours before Gannett reports its first-quarter results.

Google said its net income rose to $1.96 billion, or $6.06 a share, from $1.42 billion, or $4.49 a share in the same period last year, according to MarketWatch. Net revenue for the period ended March 31 came in at $5.06 billion. Excluding special expenses, the company said earnings were $6.76 a share. Wall Street analysts had expected Google to post earnings excluding those special items of $6.60 a share, and $4.95 billion in net revenue.

In recent after-hours trading, Goog fell $28.30 a share, or 4.8%, to $567. It's often the case that investors bid up stocks in advance of forecast financial results, then take profits by selling soon after. It's called buying the rumor, and selling the news.

GCI's stock closed at $18.14 a share today after trading as high as $18.55 -- a new 52-week high. In after-hours trading following Google's rosy report, Gannett's shares recently traded for $18.25.