Google profit rise fails to impress; shares slip

invisibleSHIELD case for iPad“Google Inc. posted a 23 percent jump in quarterly revenue on a rebound in Web advertising, but its stock fell 5 percent as the company disappointed some investors accustomed to blowout results,” Alexei Oreskovic reports for Reuters.

“Investors were also caught off guard by the company’s announcement that Chief Executive Eric Schmidt would no longer take part in quarterly earnings conference calls, as it aims to ‘streamline’ the process,” Oreskovic reports. “Google said the decision should not be interpreted as having any other meaning about Schmidt’s role at the company.”

“The stock, which has risen about 5 percent since Monday, gave up those gains to trade at $566.20 after hours on Thursday,” Oreskovic reports. “The stock had gained 1.1 percent during the regular Nasdaq session.”

“Google provided few details about its business selling ads that appear on mobile phones, but said its Android smartphone software was available on 34 different devices on the market and that the number of software apps designed to run on Android phones had grown to 38,000,” Oreskovic reports. “Executives declined to say how many of the Nexus One smartphones — which Google sells directly to consumers on its website — have been sold since being introduced in January, but said the company was pleased with the phone’s ‘uptake.'”

MacDailyNews Take: Sounds Amazonian.

Oreskovic reports, “Google faces an increasing threat from iPhone-maker Apple Inc. in the mobile advertising business.”

MacDailyNews Take: You can say that again.

Oreskovic reports, “Google faces an increasing threat from iPhone-maker Apple Inc. in the mobile advertising business.”

MacDailyNews Take: Thanks.

Full article here.

[Thanks to MacDailyNews Reader “James W.” for the heads up.]

14 Comments

  1. Have you ever in the history of MDN given any credit to any other company other than Apple? I doubt it…

    See…if the situation was reversed (as it has been many many times in the past) i.e Apple revenues up 23%, stock down 5%, then you go chanting all about the stupidity of the stock market.

    MDN must be the biggest hypocrite ever lived on this planet – by a far far margin, congrats ” width=”19″ height=”19″ alt=”smile” style=”border:0;” />

  2. “Google said the decision should not be interpreted as having any other meaning about Schmidt’s role at the company.”

    …as in our actions don’t match our words. Ominous.

  3. @Marco – if the news was really as good as you say, the market wouldn’t have driven the price down (7% at this moment). Anyone who uses the tired, meaningless term “Apple fan boys” is as blinkered as those he mocks.

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