Google Reports Strong Earnings for Q3

October 14 00:00 2011

New York, October 14 (RainbowNewsLine.com) – Google.com (NASDAQ: GOOG), the Internet search biggie reported astonishing profits even in the midst of economic chaos. Google’s profits were up $9.72 billion from $7.29 billion. According to Google most of this growth has been driven by its new powerhouse mobile technology. Google holds an almost 100% market share in the mobile search business. This combined with the fact that mobile search is becoming extremely popular has contributed to Google’s rising revenues.

Investors were getting skeptical of the increasing usage of mobile phones to surf the internet. Mobile phones are characterized by smaller and fewer ads. Most advertisers do not prefer advertising on search engines here. They rather advertise on social networking sites like Facebook which are most popular amongst mobile users. However, Google shocked the market by claiming that the mobile division contributed to more than $2.5 billion in revenue and has grown a staggering 250% in one year!

What’s disturbing though is the fact that most of Google’s revenues have not come from North America or Europe, the traditional Google strongholds. They have come from countries like Brazil, India, China, Russia and South Africa. Whether this growth is sustainable is the question.


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