Google Mania continues as revenue and profits double
Google seems to be flavor of the season. No matter what they do, everything seems to be going fine for them. Anything they touch seems to be converted into gold. And well, ever since the IPO, it has been growing and growing and growing. The latest indication that it is still continuing and is not seeing any slowing down is the fact that the company has just released their third quarter revenue reports and they sure are impressive.
Google posted a net income of $381.2 million, or $1.32 a share. This comes on record revenue figures of $1.58 billion, up 96 percent from a year earlier on strong global advertising. This is a massive improvement from last yearâ€™s figures of earnings of 19 cents a share and revenue of $805.9 million. This performance is much better than analyst expectations and includes $530 million in traffic acquisition costs.
However, the scary part is that nearly all of Google’s revenue comes from advertisements that appear on search result pages and on partner sites. They are the world leaders in web searching market and as a result are the dominating force in the advertisement accompanying the search results. Their prime rivals Yahoo! and MSN are trying hard to catch-up with them in this field and the coming times would be interesting to see how Google cope up with the competition.