Thursday, January 29, 2015

Despite billions of profits: Google disappointed analysts – NEWS

Despite billions of profits: Google disappointed analysts – NEWS


 Friday, January 30, 2015


 Google may provide investors and analysts not right. The internet giant earned considerably more, but the advertising revenues gushing not as strong. In the competitive business smartphone with advertising the competition is getting tougher.



Google builds its strong earnings and earned billions, but the high expectations of Wall Street can not fulfill the Internet giant. Google increased its surplus in the fourth quarter year on year by 41 percent to 4.8 billion dollars, as the company announced.

Analysts had expected more. The stock fell after trading initially by about two percent, then began but recovered quickly and was quoted last only slightly negative. Since the beginning of the course is dropped by five percent.

The turnover of the Internet Group, which rose by 15 percent to 18.1 billion dollars in the last quarter also below market expectations. The main source of income online advertising is losing momentum.

Google had in the fourth quarter, 14 percent more than last year paid clicks. The growth weakens thus further, in the previous quarter plus of 17 percent. Moreover, advertising flushed less in the till; The average price per ad decreased by three percent.

Tough Battle For advertising money

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Google makes much of its profits with paid text ads that are placed especially prominent in search engine results, and graphical displays, so-called banners. In addition, the Group subsidiary video service YouTube makes money by a advertising clips.

The search engine giant is fighting with other Internet giants such as Facebook and Yahoo to advertising money. Both were successful in the popular business ads on mobile devices such as smartphones last. Google is the trend inconvenient because of the small screens and often slow connections can be in the mobile business earn less than on a PC.



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