“Google Inc., the world’s largest Internet-search company, reported profit that missed analysts’ estimates after spending more on salaries and stepping up competition with Facebook Inc. and Apple Inc. (,” Brian Womack reports for Bloomberg.
“First-quarter net income climbed to $2.3 billion, or $7.04 a share, from $1.96 billion, or $6.06, a year earlier, the company said on its website today. Profit excluding some items was $8.08 a share, below the average $8.12 analyst estimate compiled by Bloomberg,” Womack reports. “The shares declined in late trading.”
Womack reports, “Google, based in Mountain View, California, dropped as low as $547.23 in late trading. The shares, down 2.6 percent this year, had risen $2.23 to $578.51 at 4 p.m. New York time on the Nasdaq Stock Market. Excluding revenue passed on to partner sites, sales were $6.54 billion. That topped the $6.32 billion average of estimates.”
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Excluding revenue passed on to partner sites, sales were $6.54 billion. That topped the $6.32 billion average of estimates.
So, in other words, if I don’t actually count my costs, I make more money? Nice accounting trick.
I’ll bet Fred Wilson is glad he dumped Apple’s stock and stuck with Google.
Schadenfreude?
YoY growth was pathetic. It’s becoming clear that the Android strategy isn’t one of revenue growth but one of revenue preservation. When was the last time Apple missed estimates?
If it bleeds, we can kill it…
iOs devices are going to outrevenue GOOG by more than 2x this quarter.
Stick it in your ear, Eric T. Mole.
Google is in the same direction as microsoft, they betrayed Job’s trust stealing IP from the company, they are more focus on competing against other companies than improving they core products.
So long google.
Seriously that last change Google made to basic search sucks donkey d!ck. What’s the point of me setting my preferences to 100 results if the damned results will default to a shi y time wasting 10?
Says the results were down because they’re spending money to “ward off competition from Facebook Inc. and Apple.” When Eric the Mole used his seat on the Apple board to copy every product idea, how is that “warding off?” How is it they ward off somebody who was there first? I’m sure it has cost them many billions to develop Android and Chrome and just as certain they aren’t making back much anything on them. Something Schmidt didn’t makes notes of, Apple does not pursue product ideas that do not have clear profit potential.
I could care less what analysts were predicting this quarter.
The company grew some 20% in a year, nothing to sneeze at.
Its good to see Larry Page at the helm.
This is a guy who is focused on the long term, not the short term.
A good use for the new server farms Apple is constructing: an Apple search engine that replaces Google as default on all Mac and iOS device.
Right back at you, Eric T. Mole!!
Apple acquired a map company or two over the last few years. It would be nice to see a superior Apple search/map drop like a bomb one day, eliminating Goog from from all Apple product defaults.
All those photocopy bills eating into their profits I guess.
But Android is already well on its way to a dominating market share!
Yeah, and 10 Years later I still haven’t clicked on one of their ads.. hrmm shocker
Google is showing that its business model is limited. It depends almost exclusively on ad revenue for its income and profits, and spending more money on software and other services that don’t generate more money just eats away profits.
For example, Google spends money developing Android, which it gives away to handset manufacturers to install on their devices. Why? So that Google will be the search engine of choice on those devices, and therefore gain more advertising revenue.
Only it doesn’t work that way. Google was and still is the default search engine on the iPhone and iPad. So people searching are clicking on Google ads, etc. Google makes money without spending money developing Android for iOS users.
If you couldn’t buy an Android phone, what phone would you buy? That’s right, an iPhone. With Google as the default search engine. And iPhone users have been proven in studies to surf more and buy more than Android users.
So in the end, Google is just shooting itself in the foot. It’s like Google has diarrhea of the wallet.
Maybe someday Google will come to terms with the idea that giving software away, even if the idea belongs to somebody else is not a very good business. Specially if you have to pay enough developers to keep up with a company that is making piles of cash selling what you are giving away. That is not counting the humongous legal department you have to finance just to fend off lawsuits from the real intellectual property owners. It will not be easy, but somebody has to reevaluate this crazy idea called Android because market share does not pay the bills.
And no @Dude McFarland. Growing at 20% YOY is appropriate for Microsoft (they wish), GE or Ford. Google is supposed to be a high growth company and is valued as such.
Google makes an operating system based on Linux.
If you truly believe that Linux on an *intellectual property* level *belongs* to anyone then I guess you must love Microsoft because they claim to own somewhere around 230 patents that Linux violates. In case you don’t understand patents they are ‘ideas’
The only reason google is getting sued over Android is because of fear, and a desire for control. I take it as a sign the OS really is that good or no one would care enough to file suit.
Google has already stated that Android is positive on the books and with them reported to be activating 350k handsets a day somehow I don’t think its considered a bad idea in many places. More like an envious position to be in. I’m sure MS would love to buy that kind of penetration for their mobile OS.
Google is not a short term investment, they may have experienced rapid growth due to some great ideas but if you read any of their investment material it becomes apparent that they consider themselves a long term investment proposition. The founders even went as far as to point this out when to the very first investors the company attracted.
They hired 2,000 people recently and gave every employee a 10% raise across the board.
I’m thinking they have big plans and Android is but a delivery method and a hedging of bets in the worst case to keep themselves relevant in the information delivery business.
Yeah, the only reason Google is getting sued over Android is because of fear, and a desire for control… Oh, and also because of the patents it violates for real and the code stolen from Sun.
None of the things Google is being sued over have anything to do with the Linux-based bits and pieces in Android. Nice strawman, Dude.
They may have stated it’s positive on the books, but what they failed to state is that Android is just barely positive on the books. The amount of money it’s generating for Google is miserable, it’s profit margin is next to zero. Vendors are perfectly free to customize Android to such an extent that all Google services are removed from it, bringing its profit margin down to a literal zero. The whole thing is house of cards, and it’s already tumbling down.
They’re activating* 350K handsets per day and they still missed estimates. Think about that. You want to know what a hit Android is for Google, well, there you go.
Big plans? Uh, yeah, they want to be a world-ruling monopoly a la Microsoft. That’s no secret. They’ve even adopted the same philosophy of just throwing money at tepid successes and outright failures indefinitely in hopes of victory through persistence. Problem is, this isn’t the 90’s anymore. Microsoft’s tactics are incresingly FAIL in the 21st century. But Google is happily copying them all the same, unaware. Recipe for disaster? You bet. These missed estimates are the beginning.
(*whatever that actually means)
I think you’re misinformed, Android OS is based on Javascript, which is the only reason for Oracle to sue the crap out of them .
You mean Java. Javascript was developed by Netscape, which is now owned by AOL.
Was it a couple of days ago when a convicted charlatan named Blodget wrote something about the iPhone was dead in the water?
Well, dead in the water is when Google loses its shirt on each Android copy it gives away while spending billions on development and support with a faint hope that someday it may recoup the investment through ads and apps sales.
I have news for you, Google. That someday is never given the tiny ads sales and the horrible fragmented mess in the Google apps space.
Meanwhile, missing EPS due to lousy business model wrecks havoc on stock price and investor confidence. Yep, that’s market share for you.
Seems the real reason GOOG is taken a beating is the increase in costs. GOOG is turning into another MSFT with billions spent on R&D that shows no results on the bottom line.
As always, MDN forgot to mention that Android now activates 350,000 units daily or about 2.5 million units a week…
Thanks for forgetting about the important info MDN! You are very UNreliable!
Ps Thanks for the free information and BTW where is your retooled App? 3 months later and counting! Is this a mythical white iPhone case issue?
Google is a predatory animal. If it cannot steal or take anything for free, it will cover its track by throwing money on bribes and buying hearts with free stuff. Google has done a lot of evil things and only with its deep pockets it is able to fend off investigations into its obnoxious activities by bribing officials. Don’t ever think that US officials are all angels. If they were, there would never be any big financial fiascos like the financial meltdown, the insurance and Medicare frauds and the lobbymen buying off Congressmen.
Sooner or later, Google will find that it cannot buy everyone with money. It’s a damn expensive exercise
Die google!!!!!
Die microsoft!!!!!
For both of you stifle innovation and creativity
settle down guys google is prototyping a self driving car which will add to their revenue very soon by.,..
oh wait
Yeah keep giving Android away free and let the Asian handset makers customize your OS to the point where there is no possibility to make $$.
Great a$$hole strategy to Apple and USA.