Google’s Second Fiscal Quarter Has Sweetness And Bitternes

Article by jianglanbo0607

Released quarterly on Thursday, Google’s massive investment and margins will be especially attractive to investors.This past quarter for Google, described as mixed, although Google + social networking products have been initially successful, but Google also been the official government antitrust investigation. Google for the quarter to put money into a variety of projects in the hope of keeping the Internet search market dominance, while entering new markets, but some of the projects not yet begun to contribute to profits. The company is currently in the field of social networking and mobile and there is competition between Facebook and Apple.Google is a number of areas to start war with other companies, including the competition for talent. The company plans to hire 6,000 employees this year, the largest in history, but also at the beginning of a 10 percent raise to all employees.Wall Street, this behavior of Google’s giving a rapid and clear response: Google announced in a substantial increase in operating expenses, and profit margins eroded, Google shares fell 8%. The company’s adjusted operating profit fell 3 percent, to 38%.”If people can see the profit margins even if signs point to stop the decline, the stock will turn for the better.” Thrivent Financial’s U.S. investment fund manager Mike Binger (Mike Binger) said, “I hope they have absorbed the cost of pre- and can give a decent profit data. “Google’s stock last week was a rare Morgan Stanley lowered, because the cost of growth. Some investors have also been prepared. U.S. asset management company Dunham Loss Averse Growth Fund Fund Manager Pat Adams (Pat Adams) said: “I have prepared for the cost increases. It’s like last week’s employment data, but also how bad?”Were concerned about Google +Google Google + is expected to slow cost increases pressure. This early access to social networking services, the evaluation is positive, sparking hope that the outside world – the company finally found an effective strategy to counter Facebook’s users and advertisers in popularity.U.S. investment bank Stifel Nicolaus analyst Qiaodan Luo Han (Jordan Rohan) said: “It makes people aware of, Facebook does not always dominate the social field, but everyone seems to like this previously assumed.”Since Google + has been released, Google’s shares have risen 9 percent, closing at $ 527.28 on Monday, the Dow Jones industrial average over the same period and the Nasdaq composite index gains were around 4%.Lohan issued to investors in a research report this week said, Google + will be Larry Page (Larry Page) as CEO since the first “strike out”, and its success “can be investors’ attention product from the expenditure to the effect. “Since April this year, took the helm since the 38-year-old co-founder of Google has streamlined its senior management decision-making process, arrange a small amount of executives reporting directly to him. But appearances in the media has been reluctant to Page in the first quarter conference call with analysts say only a few words in a hurry leave, sparked discontent, they had hoped to take this opportunity to announce Paige strategy.Google does not disclose whether it will participate in the Page conference call with analysts Thursday.Analysts on average expected, Google’s second-quarter net income (excluding the fees paid to partners) will reach $ 6.54 billion, up 28%, but were flat; earnings per share of $ 7.86. But if given a higher weight class analysts, Google is expected adjusted earnings per share reduced by 10 cents, only $ 7.76.

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