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Google Does It Again
By Stock Charts | April 20, 2007
It seems as though the sky is the limit for this internet search powerhouse. In its earnings report yesterday, Google displayed a 69% increase in first quarter profit with earnings of $3.18 per share. While the analyst average was $3.30, Google would have easily surpassed this figure if it wasn’t for employee compensation with $3.68 per share. After Yahoo’s disappointing results, investors were less enthusiastic about buying before earnings, but the positive report drove shares up 3.21% in after hours trading. Some more key statistics:
- Paid clicks on Google ads increased by 52% compared with a year ago.
- In March alone, Google received 3.5 billion search requests in the United States, or 48% share of the market. In comparison, Yahoo processed 2 billion search requests, or 27.7% of the U.S. market.
- During the 1st quarter, Google earned $1 billion, compared to $592.3 million in the same period last year.
- 47 percent of its revenue came from international sources in the first quarter, up from 42 percent last year.
- The company spent $597 million on capital expenditures in the first quarter.
- Google hired another 1,564 employees to expand its work force to 12,238 people total.
Some analysts question whether Google can maintain its substantial growth, as most of it’s revenues come from online advertising. However, Google’s flurry of recent acquisitions suggest that the internet giant is looking to branch out into different areas and diversify it’s offerings. Here’s a list of acquisitions in 2006 and 2007 (taken from the Wikipedia entry):
- January 2006 - dMarc Broadcasting - Radio advertising software and platform, $102 million
- February 2006 - Measure Map - Blog analysis
- March 2006 - Upstartle (Makers of Writely) - Online word processing
- March 2006 - @Last Software (Makers of SketchUp) - 3-D modeling
- April 2006 - Orion - Advanced search method
- August 2006 - Neven Vision - Photo sharing
- October 2006 - JotSpot - Website applications
- November 2006 - YouTube - Video sharing, $1.65 billion
- December 2006 - Endoxon - Mapping solutions
- January 2007 - Xunlei (partial acquisition) - Network, file-sharing
- February 2007 - Adscape - Video game advertising, $23 million
- March 2007 - Trendalyzer - Trend analysis software
- April 2007 - DoubleClick - Ad serving, $3.1 billion
- April 2007 - Tonic Systems - Presentation software
- April 2007 - Marratech - Video conferencing
Some of these acquisitions has several competitors worried. Microsoft and AT&T are currently urging government regulators to block the DoubleClick deal, citing a monopolistic control over the online advertising market; the irony is not lost on Google’s founders. “I hear Standard Oil is going to complain too,” Brin quipped in a Thursday interview. “I think (the concerns) are misplaced.”
Google’s chart looks pretty good as well. With the 3.21% increase in AH trading, GOOG is well within reach of breaking $500/share and retesting it’s all time highs.
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May 12th, 2007 at 11:13 am
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