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Google Doubles its Profits

Posted by ryuzaki0 on from the selling-like-hotcakes dept.

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."

7 of 203 comments (clear)

  1. Google's Bad Business Model by Umbral+Blot · · Score: 5, Insightful

    And all this money comes from adwords? Does it bother anyone besides me that google has only one source of revenue? It's like a company that sells only one product ... if demand for their product decreases the company dies. For example consider this possible situation: Microsoft bundles an adblocker with IE, automatically turned on, that blocks, among other things, google's adwords. Even if google sues MS could keep it in court long enough for google to go under. Scary isn't it?

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    Philosophy.
    1. Re:Google's Bad Business Model by bluebox_rob · · Score: 5, Funny

      And all this money comes from adwords?
      Are you kidding? Have you even been to the Google Store?! They do t-shirts, mugs - heck they even sell Lava Lamps! I'd like to see the adblocker that can block those babies...

  2. A lot of this by thealsir · · Score: 5, Interesting

    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).

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    Do not downmod posts "overrated" simply because you disagree with them.
  3. Google is a verb now by William+Robinson · · Score: 5, Funny
    Offtopic -1

    Does somebody else find it funny, how the web sites have become verbs. Look at the button 'Google Slashdot'. Imagine 'Slashdot Google' or 'Slashdot University of California' buttons to kill the web sites.

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    hilarious
  4. My google adwords by Anonymous Coward · · Score: 5, Interesting

    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.

  5. Re:Value for money by Anonymous Coward · · Score: 5, Informative

    That's $2.33 a quarter, buddy. Google's P/E is around 60, which is triple the typical blue chip, but typical blue chip companies are not growing at 70% annualized growth rates. And that's just the trailing P/E. Their forward-looking P/E is 30. Blue chip companies like Coca Cola and General Electric are trading at P/Es of around 20. And Google's profit margins, at around 25%, continue to astound.

    Google is quickly becoming a cash cow. They have $9 billion in cash right now. Microsoft has around $30 billion. That is a truly incredible comparison, given Google's relative youth.

    It's an expensive stock, but hardly as mis-priced as you seem to think.

  6. Re:Google Operating System by pedantic+bore · · Score: 5, Funny
    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.

    People said the same thing about Microsoft.

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