Google Inc., the U.S.-based web search firm,
announced last week its profits have more than doubled in the most recent
quarter. The company has managed to avoid the seasonal slump that has hit
its rivals, Yahoo and eBay.
Last week’s earnings figures significantly beat market expectations,
and sent shares of Google up nearly two percent in after hours trading on
Thursday. Google's revenue rose 77 percent to $2.46 billion, with its
second-quarter net income up sharply to $721 million.
Google CEO Eric Schmidt said, "I think this shows that the model is
working -- that the structure, the innovation, and the focus that we have
on our business, and especially on our end-users, is really delivering
good financial returns for everyone."
Rival firm Yahoo posted second quarter profits this week as well, but
those were modest and more in line with market expectations. Word that
Yahoo had postponed a planned upgrade to an advertising system designed to
compete with Google is believed to have contributed on Tuesday to Yahoo's
biggest one-day percentage decline ever. By contrast, Google confirmed
this week it plans to increase its investment in upgraded hardware and
"Google is focused as being the innovator on the Internet, and
end-users have a right to have products that scale, that work, that are
simple and that work everywhere,"said the company’s CEO. "Google is
building that platform. Google is building those solutions. We have a lot
One of the firm's latest initiatives, called Google Checkout, has
caught on fast with online shoppers and sellers. It provides single source
"log-in for purchase capability" by identifying secure places to shop
within online search results.
"We are very happy with Google Checkout so far for our end users. The
end users can now get their products even more quickly, and even more
reliably, and Google checkout makes that happen that much faster," said
Google's current growth rates are now three-to-four times higher than
those of its closest competitors. But industry analysts are debating when
-- or even whether -- the current slow growth in the industry will affect
Google as it has its rivals.