Google's profit rises 26%

Google made a strong increase in sales and a bigger profit than expected in difficult economic days.
Google made a net income for the third quarter of 1.35 billion dollars, That’s an increase of 26 percent. Their goal was they would get 4.75 dollars per share, but they did much better than expected, they earned 4.92 dollars a share.

Chief executive Eric Schmidt said he is happy with the results and he is happy that Google did better than expected in these hard economic days. Their goal is to manage Google on the long term. They want to improve the search of people on the internet, but also improve the ads for the companies and they want to invest in the mobile sector, Google wants to launch their own mobile phone.

When this news appeared on their website Google did good on the markets, they jumped more then 7 percent.

But there are some concerns, investors are concerned about the performances, because its business invest in advertising.
The share of Google felt down in the past 3 months with 36 percent because the investors are worried about the fact that Google wants to pull back on spending on search advertising.

But the facts shows the opposite, there is 18 percent more clicked on the Adsense than the same period one year ago.

Eric Schmidt said that Google will not touched by the economic crisis, when there is a crisis, people still search on the internet, but they search other stuff.

Investors wants that Google jumps over Microsoft, it’s possible that Yahoo! And Google go together with their advertises but the decision is still on hold because the government is concerned that a Google and Yahoo! would produce an online advertising monopoly. If this would happen Google would jump over Microsoft that failed to buy Yahoo!.



I think it’s good that Google made their profit rising with 26 percent.
It’s very normal that Google will not touched by the economic crisis because people still search on the internet. I use Google already 6 or 7 years and I still use it.
The only way that Google will hit by the economic crisis is when people needs to conclude their internet subscription. But in this society it’s impossible to have no internet.

It would be great for investors of Google if the company said yes to Yahoo!.
But for me it’s sometimes annoying when I go to a site there are always advertises of Google. When they go together with Yahoo! I hope there will be structural rules for them for their advertises but it would be great for the investors.

Source: http://money.cnn.com/2008/10/16/news/companies/google_earns/index.htm?postversion=2008101616