Google had good sales in Q1,but its earnings,or profitability,missed estimates.Paid clicks were up 18% for the quarter.The company took on an increase in operating expenses,however,as it invested in many initiatives,generating employee and advertising costs.
Google has long been known for its prolific hiring.Critics assert it is spending too much money.
It's very important for new CEO Larry Page,the company's co-founder,to assert his leadership now,says Joel Abramowicz,senior vice president and tech analyst at Blaylock Robert Van,who has a hold rating on the stock.They're in a very strong position in the coupon area.They already have a sales force in place.
They're a phenomenal software company with great understanding,but it's a very complex business model.It's hard to correlate their platforms as to productivity,Mr.Abramowicz feels.
Eric Schmidt recently turned over the executive reins at Google to Mr.Page,who co-founded the company with fellow Stanford University scholar Sergei Brin.The mega-firm was incorporated in 1998 and was publicly listed in 2004.More than a million servers are involved in Google's operations.
The stock tumbled on disappointment with the Q1 earnings report.
Google(GOOG)
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