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Google Doubles its Profits
WinEveryGame writes "Google just announced a very strong quarter. The internet search engine said it had net income of $721m, or $2.33 per diluted share, up from $343m a year earlier. Wall Street had expected earnings of $1.94 per share. Earlier this week Yahoo had announced lower than expected earnings."
But would you have said their expenses has doubled in the same period of time?
No.
The folks at Google never cease to amaze us!
The bring out new programs and almost ever hit the mark, with a great rate of success, but without hesitating to remove from the net their fiascos, like that Google Accelerator thing.
Just please don't be sooo US-centric and release your goodies for all the world, for example, I'd love to throw out my paypal account, but non-Americans are not able to log into Google CheckOut still!
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was due to one-time gains, such as the sale of stock in BAIDU.com. That's why the stock was down in after hours. This nonsense of beating estimates by a huge amount is a giant Wall Street smokescreen. Non-recurring things factored out, Google barely beat estimates. Growth is slowing, the CEO himself said that. I imagine more money is going to be pumped out of this in the future (admittedly YHOO had a negative effect on GOOG and BIDU).
Do not downmod posts "overrated" simply because you disagree with them.
Awsome investment. At this earnings level, it will only take 166 quarters of revenue to pay for a share. Expenses of course, will stretch that out to much more than that 41 year figure. I just don't understand how people value stocks.
What changed under Obama? Nothing Good
$2.33 earnings per share, at a cost of $387 per share. That's a return of 0.6% per year on your investment so at this rate it will take about 166 years to get your investment back in earned value.
Yep, these Internet stocks sure are amazing value for money.
Simon hibbs
Google had a net income of $721 million, according to TFA. Microsoft's net income last quarter was $2.83 billion in their last report.
So, Microsoft still have a far greater net income than Google. Still, Google is rising fast. Will we someday see Google's net income overtake that of Microsoft, I wonder?
I pay google around 14000$ per month for adwords. I pay yahoo about $500. In both places, I try to buy as much advertising as I possibly can. Yahoo simply doesnt deliver the clicks, and in fact the clicks coming from Yahoo have been FALLING if anything. Pathetic.
Ms would never do that because they are about to go into the ad business themselves. I suppose they could block all ads except theirs but I think that would end them up in court in a jiffy.
They have been floundering a lot lately, it's a mystery to me why they are so keen on getting into the search and advertising business at all. Who knows what makes Ms tick anymore. As far I can see they gone insane.
evil is as evil does
Since we are talking about the future of Google... How about Google OS version 1.0. Now I am sure that would be something awesome. With the amount of revenue they have, it's not that far-fetched to think they aren't capable of creating their very own OS. Besides, with the amount of computers we have out here in the world, there really are only 3 operating systems to choose from. Doesn't really seem like that many, considering the amount of cars of types of televisions there is out there.
look at Amazon-- from what I understand (ianastockbroker) their actual inventory itself may not even turn a profit at all, but third party sales and their e-commerce licensing (to Toys-R-Us, Target, etc) makes them more than profitable. this is possible because they have the infrastructure built. when it comes down to it, people like to click on ads and buy stuff. not you, not me, but a percentage of people do. enough to make the ad game profitable, as seen by advertising in other fields (tv, billboards, hell even spam.. someone is clicking on all those links to buy v1agr4 or you and I wouldn't get so much spam).
..as an aside, the interesting thing [for me] to ponder, is whether google will ever adapt their business model to gain profit directly from user subscriptions for various services, or whether it will always remain ad-revenue driven
google is in the process of widely diversifying, and even if microsoft DID roll out a universal adblocker that was installed by default, I can envision several scenarios that google adwords infrastructure would still be useful for. how about when google unveils their free natiowide wifi metropolitan internet access.. of course it's free in exchange for using Gbrowser with AdViewing enabled.
I use gmaps on my BlackBerry8700 all the time.. google's success is all about creating functional/useful utilities (email, mapping, search engine, blogger, gcheckout, whatever) and then stuffing ads in there. The fundamental question is not whether MS can block them, it's whether ads can be profitable, and I believe the answer is yes.
I am Jack's complete lack of surprise.
Richard Brandt argues with passion that Google will eclipse Microsoft. The idea is that all the reasons why Microsoft beat everybody else don't apply to Google. I disagree, however, because I don't see Google's advantage as having much sustainability.
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On the other hand, I was fairly late to realizing how sustainable Microsoft's advantage would prove, back in my stock analyst days, so do consider the source
To err is human. To forgive is good system design.
And how much of that profit is due to AdSense click fraud?
Not sure why this got marked Troll. It's a valid point, Google (and others) are making good money but operating on an insane ratio that makes their current stock price look highly optimistic. Many industries operate on a 20-25 ratio but some of the newer tech stocks are on 400+. Much of the problem though is that the markets have no real way yet to analyse how well a tech company is doing.
I want a list of atrocities done in your name - Recoil