Targeted Strategies for Today's Evolving Markets

MissionIR Blog

Google Inc. (GOOG) Slaps Analyst Expectations with Solid Revenue Figures

Many people are still smarting over the dotcom bust in 2007. They saw companies grow like flowers in the noonday sun and reaped financial rewards like never before. Then, they got burned and lost it all (metaphorically and literally) when companies couldn’t support their weight. Now, they see a company that has shot up like before, and they’re not about to let it burn them again. Those that play with bubbles, like the .com one, usually go out like bubbles. Those that nurture the flower see it grow and spread over time.

Google Inc., a website indexing and advertising host, works to offer web-based ads and various applications to the Internet user at large. From a general perspective, Google offers Internet users easy access to the Internet. The company generates income from its own websites, advertising revenue from second level advertisers on a contract basis, and pay per click revenue generated from advertisers.

The company recently reported its first quarter sales, surpassing expectations and surprising analysts by posting a 42% gain in revenue over the previous year, while first quarter 2008 revenue grew 7 percent over the fourth quarter of 2007. Positively speaking, the company’s revenue was generated over a broad base with no one revenue generator outperforming another by significant amounts. The recent acquisition of DoubleClick Inc. was included in these figures but – according to the company – had a negligible effect.

The way the market reacts to this company’s every move, one might think that Google has been operating for decades. A reminder, every once and a while, might be advisable: Google Inc. is a fairly young company, and is still working to find its sustainable growth legs. Granted, the company will probably be around for a long time to come, but it is still a relative newcomer that needs to grow in a controlled way.

Let us hear your thoughts below:

This entry was posted in Small Cap News. Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *