It wasn't that long ago online tracking company comScore sent a shiver through the stock market when it released figures showing signs of the economic slowdown weighing on Google, as evidenced by a continuing deceleration of ad click-through rates. Even though comScore came out a few days later with a more favorable interpretation of the numbers. The report fed into the stock market's fears and hammered Google shares further along a slide that had started at the beginning of the year.
Well, at the end of last week it turned out all that worrying was for naught. After market close Thursday, Google delivered a quarterly report showing all parts of its money-making machinery to be cranking right along, with net income up 31 percent to $1.31 billion and revenue up 42 percent to $5.19 billion over the same period last year.
As CEO Eric Schmidt put it, "The business model continues to work very well and we've had good, disciplined management of our operating expenses, so thank you very much for the management team. It's also interesting to note that paid clicks growth is much higher than has been speculated by third parties." The 800 pound gorilla is on track to become a 1600 pound gorilla!
George Parker
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