Google Inc shows positive results, dispels fears despite fears of a darkening economic outlook, especially in Europe which had fueled worries about advertising growth. Google Inc.’s 3rd Quarter results have calmed the troubling waters & shown everybody that though, they may not be immune to the market but are surely performing better than traditional players.
Google Inc. reported that it had increased its profit by 26 percent and revenue by 37 per cent in the third quarter of 2011. This news was well taken by the Stock market & share price of Google rose 6 per cent within 1 day & now sits @594 US Dollars on NASDAQ. The share price is still roughly 8 percent lower than its 52 week high of @ USD 643. The reason for growth was attributed to robust demand from advertisers in emerging markets, such as in Asia, as well as strength in its mobile and display advertising businesses.
Chief Executive Larry Page, who assumed the top job in April, told analysts on a conference call that he was “whittling down Google’s sprawling portfolio of projects and diverting resources to businesses with higher potential returns”. He further added: “We have to make tough decisions about what to focus on, or we end up doing things that don’t have the impact that we strive for. Since we last spoke we’ve begun the process of shutting over 20 different products”.
With recent introduction of Google+ to rival Twitter / Facebook, massive acquisitions of Motorola Mobility, Like.com, Jambool, Slide, Aardvark and iPhone email app maker reMail, Google literally seemed to be on a buying spree.
Does this mean that Google will slow down on the acquisitions & aim to acquire technologies to fortify their already robust stand? What do you think?
Author: Alap Naik Desai