Google did show an increase of 27% on revenues for the last three months of 2011 but that too was less than what was expected. It was just not good enough to meet Wall Street estimates, which in turn sent the shares tumbling down. Google shares took a downfall of about 10% in after-hours trading to $575.

Google had reported 3 month revenues of $10,6bn. Its net profit rose 6.4% to $2.7bn.

“Google had a really strong quarter ending a great year…I am super excited about the growth of Android, Gmail, and Google+, which now has 90 million users globally - well over double what I announced just three months ago. – Chief executive Larry Page.

This came as fellow technology firms like Microsoft and Intel also posted results for the same period. Microsoft posted flat earnings of $6.62bn in the same quarter, seeing strong business demand for software and services. Intel, the world’s largest chipmaker, posted a better-than-expected 6% rise in earnings to $3.36bn, even though the floods in Thailand knocked out factories that produce hard drives and components.

Speaking to BBC Radio 5 live, Graham Palmer, head of Intel, said, “We're seeing strong growth in the merging PC markets…China now has 20% consumption of the personal PC market - there are about one million PCs 'consumed' every day globally and there is still lots of growth, especially the emerging markets of Brazil, Russia, India and China.”

But the analysts were not as impressed with Google’s figures.

“Expectations were very high and they have missed that… Unlike Microsoft and Intel, estimates for Google have been rising for a few months.” – Trip Chowdhry, from Global Equities Research.

The number of clicks on Google’s search adverts rose significantly in the fourth quarter, but the amount that Google was able to charge advertisers for each click fell by a staggering 8%.

“Expectations had got ahead of themselves for Google, largely because investors don't have a good feel for what happens outside the US…North America has remained strong, but there are parts of the world where there's a lot of economic pressure. I would have to assume Europe, particularly Germany and some others, undergoing austerity measures. The underlying demand in those countries is weak” – Jordon Rohan from Stifel Nicolaus.

For the full year, Google reported a 29% rise in revenue to $37.9bn, with net profit up 14% to $9.7bn.

In this race for being at the top, will Google reach the mark? Or will it face a downfall gradually? Will Microsoft take over with its software and services?