latest-business-news-google-profits-down

Google’s profit down…

latest-business-news-google-profits-down
latest-business-news-google-profits-down
The Web search giant, GOOGLE, on Thursday reported an 27% jump in revenue, boost, as well as 18% profit boost, as cash continued to flow directly into Internet advertising.

But just what stood out had been Google’s surging costs since the Mountain View, Calif., company attempts to keep forward among an increasingly competitive and fast-changing Silicon Valley scene.

Google’s operating expenses-what that pays on salaries, advertising and research-rose 54% from a year ago and represented a third of its quarterly revenue, the highest ratio in a long time.

The company continues to be spending seriously in workforce hiring and compensation, in addition to new solutions. Research as well as development charges soared to $1.23 billion for the quarter, upward from $818 million last year. Marketing and advertising expenses rised 69% to over $1 billion while Google invested to create it’s local-ad business and to promote its Chrome browser.

Increasing costs occur since Google goes thru a management change, along with co-founder Mr. Page taking the reins coming from long time CEO Eric Schmidt earlier this month. The 38-year-old Mr. Page takes over as Google is working to diversify it’s income streams beyond search advertising and it is dealing with additional competition from companies such as Apple Inc. and Facebook.