Google's New Strategy Making stakes Down
Sunday, April 17, 2011 by Admin
Investors who expect a lot of performance newest CEO of Google,Larry Page, was forced to swallow the bitter pill. Although profitsrose 17%, investors remain disappointed. Why?
As the largest online search engine in the world, Google is stillreap many benefits. They claim to get first-quarter net income ofU.S. $ 2.3 billion, up 17% compared to last year. Sales also rose27% to U.S. $ 8.6 billion.
However, investors are not too pleased with this figure. Larry Page, who replaced Eric Schmidt as chief executive, last weekpresented their aggressive plans in product development.
They also had a massive recruitment of about 26 thousand people.In fact, the division of product development, Google is showing offthe six executives who have a high authority.
But this is what causes Google shares slip prediction. Google's stock is now worth U.S. $ 7.08, a lower value than the previousestimate of U.S. $ 8.08 per share, according to Thomson Reutersanalyst.
Moreover, Google invested at least U.S. $ 900 million in the last quarter for the cost of new infrastructure. They were also forced to pocket that rose 10% for staff salaries.
Analysts worry that the cost impact on company margins, based onthe information to CNN. (here)
As the largest online search engine in the world, Google is stillreap many benefits. They claim to get first-quarter net income ofU.S. $ 2.3 billion, up 17% compared to last year. Sales also rose27% to U.S. $ 8.6 billion.
However, investors are not too pleased with this figure. Larry Page, who replaced Eric Schmidt as chief executive, last weekpresented their aggressive plans in product development.
They also had a massive recruitment of about 26 thousand people.In fact, the division of product development, Google is showing offthe six executives who have a high authority.
But this is what causes Google shares slip prediction. Google's stock is now worth U.S. $ 7.08, a lower value than the previousestimate of U.S. $ 8.08 per share, according to Thomson Reutersanalyst.
Moreover, Google invested at least U.S. $ 900 million in the last quarter for the cost of new infrastructure. They were also forced to pocket that rose 10% for staff salaries.
Analysts worry that the cost impact on company margins, based onthe information to CNN. (here)
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