Trades and observations from a British contrarian stock investor

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Friday, January 21, 2011

Google blows out earnings and Larry Page takes over as CEO

Accompanying the very strong Q4 2010 results after the Wall Street closing bell last night it was announced that Larry Page will take over Google's CEO position from Eric Schmidt in April. Co-founder Sergey Brin will focus on strategic projects and Google said, and ex-CEO Schmidt becomes executive chairman.

The continued strength of the internet advertising space was confirmed by the company's 4th quarter 2010 earnings report. Net income rose to $2.54 billion ($7.81 a share), from $1.97 billion ( $6.13), 12 months before. Revenue came in at $6.37 billion, or $8.75 s share versus expectations of $6 billion and $8.06 a share. The shares finished at $635, up $8.

Google's core Adwords business seems to be in good health and new businesses such as online display ads and mobile finally seem to be adding to the company's profit momentum and providing some diversification away from pay per click online ads.

So on the corporate earnings front the big U.S. tech players are delivering the goods. Corporate America seems strong, less so "man in main street".


Posted by Contrarian Investor UK at 4:01 AM 0 comments
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