Google Posts Impressive Q2 2014 Earnings Report
With $16 billion in revenues, which reflects a 22% increase since 2013, Google’s second quarter results impressed investors.Currently trading at $566.49 a share, Google also posted operating income at $4.26 billion for Q2 2014 which is a 27% increase over last year.
Just under $11 billion of the $16 billion in quarterly revenues, came from Google’s services and sites.
This marks a 23% increase since the same quarter last year.
Meanwhile, twenty-one percent, or $3.42 billion, was generated by Google’s partner sites.
When we take into account that Google took a knock after they sold Motorola Mobility to Lenovo for $3 billion after they acquired the company for $12.5 billion, the earnings reports are impressive.
Furthermore, with Facebook (NASDAQ:FB) increasing its share in the mobile advertising market and Google’s declining cost-per-click, the company’s Q2 2014 earnings report has helped to boost their share price over the last few weeks.
Google’s other revenues of $1.6 billion, from last year’s $1.5 billion, came from app download revenues as well as a large selection of games which has become a major focus for the company.
While the recent results from Google beat market expectations, the self-learning algorithm has indicated that while the share price will rise in the long term, we may see a short term drop in the near future.
Google also announced the departure of Nikesh Arora, Google’s Chief Business Officer, who will be replaced internally by Omid Kordestani.
While a recent report in the New York Times stated that 1.2 billion user names and passwords had been hacked by Russian hackers from over 420,000 sites, the question is what steps are Google taking to prevent the misuse of personal information and how will this impact them in the long run?