Positive Google Earnings Send Stock to Record Highs

Positive Google Earnings Send Stock to Record Highs


(Image source: Flickr / Jonah Grant) BY EVAN THOMAS Google reported robust earnings for the third
quarter, beating Wall Street’s expectations and sending the company’s stock to record
highs. The Web company cleared $14.9 billion in revenue;
a 12 percent boost over last year’s third quarter. $3.44 billion in operating profit
was up from $2.74 billion this time last year. 91 percent of the company’s revenue came from
ads — but believe it or not, advertising’s share is falling. Google’s mobile advertising
still isn’t, ah, clicking with smartphone- and tablet-wielding consumers. But while those revenues are in decline on
mobile platforms, an analyst tells CNBC Google is still building mobile ad volume. “We’ve seen a 26 percent increase, which is
absolutely phenomenal. It’s showing that Google, obviously, in light of bad news, they’re able
to make some pretty good news out of that.” The eyeballs are certainly there. YouTube,
for example, is now seeing more than 40 percent of its use come from mobile devices. That’s
up from just 6 percent two years ago, so maybe Q4 will show better ad results. (Via IntoMobile) Another bit of Google analysts are hoping
to see improve over the next three months: Motorola. Its share of Google’s revenues sank by $600
million this quarter, to 8 percent of totals. The company is still recording quarterly losses,
despite the launch of its Moto X smartphone. But a writer for ReadWrite says it’s not the
end of the world. Yes, Moto is a cash sink — but it provides a valuable testbed for
Android improvements like voice recognition and gesture control. “In the short term, there is less importance
on how much the smartphone maker is losing than on building the company, its technology
and infrastructure.” So — mostly good news, some not-great news
from the mobile and mobile ad divisions. Wall Street doesn’t seem to mind the rough patches. Google’s stock spiked to record highs on the
earnings report — prices passed $1,000 a share for the first time in the company’s
publicly traded history Friday morning before the markets opened, and at time of writing
it’s still sitting just above that milestone.

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