Google’s results a mixed bag

Google

Google is doing well, but that’s normal, and many analysts were not overly impressed.

Google reported consolidated revenues of US$16.86 billion for the quarter ended 31 December, an increase of 17% compared to the fourth quarter of 2012. Annual revenues were US$57.86 billion.

Operating income (profit) in the fourth was US$3.92 billion, or 23% of revenues compared to $3.39 billion, or 24% of revenues, in the fourth quarter of 2012. Revenues were roughly 50:50 inside and outside if the US.

The revenue growth was higher than expected, but the slightly lower profit margin was regarded by some as a worrying sign. Paid clicks rose 31%. But cost per click (CPC) fell by 11%. Lots of people are clicking on Google ads, but the ads are declining in value.

 Google also announced that its shares, now trading at a near record US$1181, will be split in April. “Google is just taking a dime and making it two nickels, but some investors do trade on stock splits like this,” said Colin Gillis, an analyst at BGC Partners, quoted in USA Today. “There’s a school of thought that splits like this make the stock more affordable for some investors.”

Source: itwire

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Create a website or blog at WordPress.com

Up ↑

%d bloggers like this: