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Wednesday, 23 January 2013 10:06

Google beats analysts’ expectations

Written by Peter Scott



Core business going strong


Google doesn’t seem to be too affected by the PC downturn. To the contrary, the search giant beat analysts’ expectations, generating net revenue of $9.83 billion, up from $8.13 billion in Q4 2011.

The result beat analyst expectations by a couple of hundred million and pushed the company’s shares up by about five percent in late trading. Net income in Q4 was $2.89 billion, up from $2.71 billion year-on-year.

However all is not well in the House of GOOG. Average cost-per-click declined 6 percent from a year ago, marking the fifth consecutive quarter of decline, Reuters reports. Still, the decline is not as bad as some analysts had expected. The decline is attributed to the smartphone/tablet boom, as Google’s mobile ad rates are lower than on standard sites.

There is some good news for hardware lovers as well. Larry Page claims Google is working to address shortages of Nexus products, and we are guessing he is talking about the Nexus 4. Speaking of hardware, Motorola Mobility did not do all that well and it had an operating loss of $353 million during the quarter.

Peter Scott

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