Syed Haider Imam
Chief Minister (5k+ posts)
Recently, Pakistani Government banned U tube ( Owned by Google ) . I thought it may be worth it to share the news that Google lost 8% in today's trading.
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Google results disappoint, ad revenue weakens
Google Inc. can usually rely on the Webs instantaneous enthusiasm to help generate the search traffic that make its targeted advertising so profitable.
But on Thursday, that enthusiasm centred on Google chief executive officer Larry Page, part of an embarrassing day for the company that saw Googles stock drop 9 per cent in mid-day trading, before closing down 8 per cent at $695 (U.S.).
The phrase PENDING LARRY QUOTE featured prominently in the companys third-quarter earnings release, which was inadvertently released early by RR Donnelly, the company responsible for filing Googles results with the SEC. The results are usually released after the markets close.
Quickly, people joked on Twitter that the pending quote might just be, Youre fired. A fake Twitter account, @PendingLarry, sent out gems like: Google News is dropping its digital format, will go all-print. And someone registered the website PendingLarry.com, which recommends readers not make a bigger mistake than we just did, and instead vote for Mitt Romney in the upcoming U.S. presidential election.
Even worse for Google is that the company missed analysts estimates because advertising is becoming less profitable as the world goes mobile. Google searches are increasingly made not from desktop computers but from mobile devices, such as smartphones, where the advertising model is less profitable and still in development.
The world is changing, the world is moving mobile, and weve not quite figured out what the right model is around mobile advertising, said Maribel Lopez of Lopez Research in San Francisco.
People are placing bets in certain areas. Even if everyone was shaving off 2 or 3 per cent of what theyre giving Google, and trying it somewhere else, that would still have an impact
Analysts, as usual, had expected strong earnings from Google, but the company missed estimates on almost all fronts. Profit fell to $6.53 (U.S.) per share compared with the $8.76 that analysts expected. Revenue in the quarter was up 5 per cent, quarter-over-quarter, to $11.5-billion. Motorola, the loss-making handset maker Google acquired for $12.5-billion last year, suffered an operating loss of $527-million.
While paid clicks increased by 33 per cent from the same time last year, Googles cost-per-click what advertisers pay Google for each of their ads that gets clicked on dropped by 15 per cent. That has analysts and observers worried about how Googles business might get disrupted as the world shifts from desktops to mobile.
There are two big problems in these numbers for Google, said Eric Jackson, founder of hedge fund Ironfire Capital LLC. First, Motorola is a lumbering beast that really weighed on the company's results. It's going to continue to be a distraction in the future because hardware is such a different business from advertising and software. Second, the rapid shift to mobile is continuing to pull down Google's profitability.
Of course, in one way, Google is very much at the forefront of the global shift to smartphones: Its Android mobile operating system powers more than half the smartphones in the U.S., as well as millions more in emerging markets around the world where Chinese device makers are bringing the average cost of smartphones down sharply. On a call Thursday with analysts, Mr. Page apologized for the scramble earlier today, and played up how much the companys mobile revenues were improving with a run rate of roughly $8-billion compared to $2.5-billion last year (the newer, higher number also includes revenue from Androids Google Play store).
I think were positioned well, Mr. Page said, noting that until very recently advertisers have not spent as much money on mobile ads compared with other types. I think theyll invest more effort in targeting those [mobile] users which will obviously benefit our monetization. Im not worried about this.
Googles call with analysts ended on an upbeat note, roughly in line with the tone set by what eventually replaced Mr. Pages pending quote from the leaked release. We had a strong quarter, Mr. Pages canned quote reads. I am also really excited about the progress were making.
http://www.theglobeandmail.com/glob...disappoint-ad-revenue-weakens/article4620716/
------------------------------------
Google results disappoint, ad revenue weakens
Google Inc. can usually rely on the Webs instantaneous enthusiasm to help generate the search traffic that make its targeted advertising so profitable.
But on Thursday, that enthusiasm centred on Google chief executive officer Larry Page, part of an embarrassing day for the company that saw Googles stock drop 9 per cent in mid-day trading, before closing down 8 per cent at $695 (U.S.).
The phrase PENDING LARRY QUOTE featured prominently in the companys third-quarter earnings release, which was inadvertently released early by RR Donnelly, the company responsible for filing Googles results with the SEC. The results are usually released after the markets close.
Quickly, people joked on Twitter that the pending quote might just be, Youre fired. A fake Twitter account, @PendingLarry, sent out gems like: Google News is dropping its digital format, will go all-print. And someone registered the website PendingLarry.com, which recommends readers not make a bigger mistake than we just did, and instead vote for Mitt Romney in the upcoming U.S. presidential election.
Even worse for Google is that the company missed analysts estimates because advertising is becoming less profitable as the world goes mobile. Google searches are increasingly made not from desktop computers but from mobile devices, such as smartphones, where the advertising model is less profitable and still in development.
The world is changing, the world is moving mobile, and weve not quite figured out what the right model is around mobile advertising, said Maribel Lopez of Lopez Research in San Francisco.
People are placing bets in certain areas. Even if everyone was shaving off 2 or 3 per cent of what theyre giving Google, and trying it somewhere else, that would still have an impact
Analysts, as usual, had expected strong earnings from Google, but the company missed estimates on almost all fronts. Profit fell to $6.53 (U.S.) per share compared with the $8.76 that analysts expected. Revenue in the quarter was up 5 per cent, quarter-over-quarter, to $11.5-billion. Motorola, the loss-making handset maker Google acquired for $12.5-billion last year, suffered an operating loss of $527-million.
While paid clicks increased by 33 per cent from the same time last year, Googles cost-per-click what advertisers pay Google for each of their ads that gets clicked on dropped by 15 per cent. That has analysts and observers worried about how Googles business might get disrupted as the world shifts from desktops to mobile.
There are two big problems in these numbers for Google, said Eric Jackson, founder of hedge fund Ironfire Capital LLC. First, Motorola is a lumbering beast that really weighed on the company's results. It's going to continue to be a distraction in the future because hardware is such a different business from advertising and software. Second, the rapid shift to mobile is continuing to pull down Google's profitability.
Of course, in one way, Google is very much at the forefront of the global shift to smartphones: Its Android mobile operating system powers more than half the smartphones in the U.S., as well as millions more in emerging markets around the world where Chinese device makers are bringing the average cost of smartphones down sharply. On a call Thursday with analysts, Mr. Page apologized for the scramble earlier today, and played up how much the companys mobile revenues were improving with a run rate of roughly $8-billion compared to $2.5-billion last year (the newer, higher number also includes revenue from Androids Google Play store).
I think were positioned well, Mr. Page said, noting that until very recently advertisers have not spent as much money on mobile ads compared with other types. I think theyll invest more effort in targeting those [mobile] users which will obviously benefit our monetization. Im not worried about this.
Googles call with analysts ended on an upbeat note, roughly in line with the tone set by what eventually replaced Mr. Pages pending quote from the leaked release. We had a strong quarter, Mr. Pages canned quote reads. I am also really excited about the progress were making.
http://www.theglobeandmail.com/glob...disappoint-ad-revenue-weakens/article4620716/
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