Google profits cheer investors but experts still sceptical about Google +
- 14 October 2011
The firm saw net income of $2.73bn (£1.73bn) for the three months to 30 September, from $2.17bn a year ago. Net revenue, excluding payments to partner websites, surged by 37 per cent to $7.51bn.
Income from the UK was just over $1bn.
The Guardian quotes Needham analyst Kerry Rice calling the results "nothing short of phenomenal".
For those who want to take a closer look at the firm's results, here is the release from Google's Investor relations site.
But website Techcrunch – and nobody's patsy – suggests the Google chief is getting a little boastful though the graph of quarterly revenues since 2009, suggests he has some reason to be.
The site notes that: "A lot has happened for Google during this quarter, namely its bid to acquire Motorola and pickup and public launch of Google's social product Google+. The company presently has 31,353 full-time employees and $42.6 billion in cash."
It is not just Facebook that Google is facing off against. Here website Media Decoder says that Google is planning to open a MP3 player store suggesting it has its eye on Apple as well.
The website writes that "Five months after it introduced a cloud music service with limited capabilities, Google is in negotiations with the major record labels to expand that service and also open an MP3 store that would compete with Apple and Amazon."
There are however sceptics particularly about that tricky Google + initiative – the strategy that seems to be most aimed at Facebook.
Larry Page says Google + has 40 million users. But website Search Engine Land isn't impressed.
Noting that Facebook's active users are around 800 million and Twitters are 100 million, Danny Sullivan adds: "How about the 40 million figure that Google released today. Those are simply the number of people who have signed-up for Google Plus, the company tells me. It's not an active user figure. More accurately, it would be called the sign-up figure. Some of those will be active. Indeed, millions will have signed up within the past month, when Google+ opened to anyone. The mere act of signing up would make the active, at least for a bit longer. But not all of them. What is the active user figure for Google Plus? That's not something Google's giving out, right now. That means going forward, until you hear the word "active" next to a figure that Google provides, don't use it to measure against the active figures given out by its competitors. It's just not accurate."
And Minyanville reports on an unfortunate leaked missive from a Google + engineer Steve Yegge that reads as follows – "A prime example of Google's complete failure to understand platforms from the very highest levels of executive leadership," The Google+ platform is a pathetic afterthought".
Markets, though, don't appear too worried. Reuters quotes analyst Colin Gillis of BGC partners in even more upbeat mood. He says: "Christmas came early for Google shareholders. It's all about the core business. You drive that extra revenue and expense becomes secondary. It was a great beat on the bottom line. It's not necessarily because they are controlling expenses. It's because they are driving more revenue."
More from Mindful Money:
To receive our free email newsletter sign up here.
- An end in sight for PPI calls as financial watchdog sets 2018 complaints deadline
- Three scenarios for the future of Volkswagen and its impact on the German economy
- Are local bank branches becoming irrelevant? Just over a third of people actually know where their local one is
- Just 53% of investors over the age of 65 think they have sufficient savings for later life
- Pocket an extra £135,000 over a lifetime by kicking your smoking habit this 'Stoptober'
- Bank account review - Which? calls for compensation for customers suffering poor service
- Avoid a Hallowe'en horror by remembering to switch energy deals warns Gocompare
- Markets rise, but will October continue to spook investors?
- Employers attack training levy as 'little more than a tax on business'
- Leading trade body calls for single rate of tax relief on pensions at 25% or 33% as current system "benefits the rich"