Mobile Tech Today

CIO Today Network Sites:   Top Tech News  |   CIO Today   |   Mobile Tech Today   |   Data Storage Today
News & Product Reviews for Mobile Tech Users
Thursday, April 24th 
24/7/365 Network Uptime!
Trending Topics:   Security Heartbleed Big Data Cloud Computing Windows XP Data Centers OS X Mavericks
Home
Laptops & Tablets
Mobile Phones
Mobile Gadgets
Mobile Apps
BYOD & MDM
iPad
Mobile Industry News
Wireless Connectivity
Wireless Security
GPS & Maps
MTT Press Releases
 
Free Newsletters
Top CIO News
 
Mobile Tech Today
 

Business Briefing

Earnings Surprise Hits Google Stock

Earnings Surprise Hits Google Stock
October 19, 2012 11:30AM

Bookmark and Share
"If Google can figure out how to increase what they earn per mobile click they will improve quickly," said analyst Jeff Kagan. "Google is redefining the space and that can get messy at times like now. So I still believe Google is on the growth side of their wave, but their journey is no longer just straight up."

Your Next Generation Data Center Is Here! Vblock™ Systems: the world's most advanced converged infrastructure are built on the Cisco Unified Computing System with Intel® Xeon® processors. Vblock™ Systems deliver extraordinary time to market, ROI and TCO, and flexibility to meet your continually changing demands with 5X faster deployment, 96% less downtime, and 1/2 the cost. Click here to learn more.

It's hard to imagine a brand name more associated with today's high-tech, constant-connection world than Google. From a simple search engine the company has soared into software with its Android mobile operating system, advertising, applications for businesses, cloud storage and even into electronics manufacturing with its Nexus phones and tablets and its acquisition of Motorola Mobility.

So "earnings short of expectations" are not words generally associated with the Mountain View, Calif.-based giant founded by Sergey Brin and Larry Page in 1998.

Nevertheless, third-quarter results for the company released on Thursday sent its stock plummeting, with revenue from ads down 15 percent year over year for the fourth consecutive quarter. Third-quarter gross revenue was $14.1 billion, up 45 percent from the same quarter last year, and net revenue was $11.33 billion, up from $7.51 billion, according to The New York Times.

Trading Suspended

But net income dropped from $2.73 billion to $2.18 billion. Trading in Google stock was suspended for two and a half hours after the stock began plummeting when the results were released (in error) before the close of trading. Google closed at $695, down 8 percent.

Motorola Mobility, which was acquired this year by Google, showed an operating loss of $527 million for the quarter, up from $233 million in the second quarter.

CEO Page tried to put a good spin on the results in a statement Friday.

"We had a strong quarter," he said. "Revenue was up 45 percent year-on-year and, at just 14 years old, we cleared our first $14 billion revenue quarter. I'm also really excited about the progress we're making creating a beautifully simple, intuitive Google experience across all devices."

Analysts note that tech companies can't help but have their ups and downs in such a fluid market.

Riding the Wave

"One important thing to remember is every company rides a growth wave, first up then down the other side," said consultant and commentator Jeff Kagan. "Remember companies like RIM with Blackberry and Nokia, who were growing and No. 1 for more than a decade, suddenly struggling as both Apple iPhone and Google Android took their place a few short years ago?"

But Kagan noted that the company needs to maximize its profit from mobile advertising, which is less lucrative than ads for computers. Advertisers are willing to pay less even as the number of clicks per ad increases, because it is assumed that mobile-device advertising doesn't have much penetration.

"If Google can figure out how to increase what they earn per mobile click they will improve quickly," Kagan told us. "Google is redefining the space and that can get messy at times like now. So I still believe Google is on the growth side of their wave, but their journey is no longer just straight up. It has a few steps and I believe that is what we are seeing today."

Financial adviser Spencer Sherman of Calif.-based Abacus Wealth Partners said the results show that almost no company can be considered only an upward trajectory when technology transforms the world so quickly.

"It's a form of gambling to try to predict what's going to happen," Sherman told us. "Even Apple is going to have its day not sitting in the sun. People have such high expectations, but there are so many companies out there saturating the market with smartphones and other devices, so something is going to happen that you can't predict today."

Tell Us What You Think
Comment:

Name:



 Business Briefing
1. AT&T in $500M Net Video Partnership
2. High Court To Hear Aereo Dispute
3. Aereo CEO Speaks Out on Future
4. Uber Meets Local Lookalikes in Asia
5. Otherworldly Ambitions of Elon Musk




 Most Popular Articles
1. Google Glass Finds a Home in Medical Education, Practice
2. HP Rolls Out New Software-Defined Network Products
3. Smartphone Kill Switch Could Save Users $2.6B a Year
4. Avaya Aims To End Network Waiting Game
5. Google Video Shows Off Modular Project Ara Phone


Have an informed opinion on this story?
Send a Letter to the Editor.
We want to know what you think.
Send us your Feedback.

 Related Topics  Latest News & Special Reports

  Opera Coast Offers Safari Alternative
  Salesforce Developing App SOS Button
  What Might an Amazon Phone Offer?
  OnePlus One Boasts Android Weapon
  Samsung Gear Fit Geared for Exercise

 Technology Marketplace
Business Intelligence
Get real-time, cloud-based information services with Neustar.
 
Cloud Computing
Next Generation Data Center Is Here! Vblock™ Systems from VCE
 
Contact Centers
HP delivers the future of the contact center with HP Qfiniti 10.
 
Data Storage
Next Generation Data Center Is Here! Vblock™ Systems from VCE
Barium Ferrite (BaFe) is the future of tape.
2.5" Enterprise-class SATA & SAS SSDs for server & storage applications
 
Enterprise Hardware
Barium Ferrite (BaFe) is the future of tape.
2.5" Enterprise-class SATA & SAS SSDs for server & storage applications
 
Hardware
Protect your network with APC Smart-UPS battery backup
 
Network Security
Protect your network with APC Smart-UPS battery backup
 

Network Security Spotlight
Tech Giants Fund Initiative To Prevent Future Heartbleeds
Can more funding prevent Heartbleed vulnerabilities in future open-source software? A new Core Infrastructure Initiative at the Linux Foundation is attempting to find out.
 
What Verizon's Data Breach Report Can Teach Enterprises
It’s probably not a jaw-dropper, but cyberespionage is officially on the rise. And the use of stolen or misused credentials is still the leading way the bad guys gain access to corporate information.
 
Top Cyberthreats Exposed by Verizon Report
Beyond Heartbleed, there are cyberthreats vying to take down enterprise networks, corrupt smartphones, and wreak havoc on businesses. Verizon is exposing these threats in a new report.
 
Navigation
Mobile Tech Today
Home/Top News | Laptops & Tablets | Mobile Phones | Mobile Gadgets | Mobile Apps | BYOD & MDM | iPad
Mobile Industry News | Wireless Connectivity | Wireless Security | GPS & Maps | MTT Press Releases
Also visit these Enterprise Technology Sites
Top Tech News | CIO Today | Mobile Tech Today | Data Storage Today

Services:
FreeNewsFeed | Free Newsletters | XML/RSS Feed

About CIO Today Network | How To Contact Us | Article Reprints | Services for PR Pros (In partnership with NewsFactor) | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 Mobile Tech Today. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.