Google fourth-quarter revenue misses Wall Street target
admin • January 30, 2015 • 2290
People are silhouetted as they pose with laptops in front of a screen projected with a Google logo, in this picture illustration taken in Zenica October 29, 2014. CREDIT: REUTERS/DADO RUVIC
(Reuters) – Google Inc’s (GOOGL.O) (GOOG.O) revenue grew 15 percent in the fourth quarter but fell short of Wall Street’s target on declining online ad prices and unfavorable foreign exchange rates.
Shares of Google edged up 0.1 percent to $510.66 in extended trading after an initial dip on the news.
Google’s advertising revenue has come under pressure as more consumers access its online services on mobile devices such as smartphones and tablets, where ad rates are typically lower. The growing popularity of mobile devices has made No. 1 social network Facebook Inc (FB.O) a greater threat in the battle for advertisers. Facebook reported on Wednesday that mobile ads on its network doubled year-over-year during the fourth quarter.
Google said on Thursday the average price of its online ads, or “cost per click,” decreased 3 percent year-over-year in the fourth quarter, while the number of consumer clicks on its ads increased 14 percent.
Some analysts had hoped for gains in cost-per-click, said BGC Partners analyst Colin Gillis, adding that the company, which gets about half of its revenue overseas, also was hurt by the strong dollar.
“Business is slowing. The core is slowing. And what we’re saying is, it’s going to look on paper even worse as the dollar strengthens. And we are not at that point where mobile monetization is improving,” he said. “The thesis that the landscape is changing and Google is missing out – I don’t think it will hold to be true, but they haven’t squelched it.”
Consolidated revenue in the three months ended Dec. 31 totaled $18.10 billion, compared to $15.71 billion in the year-ago period. Analysts polled by Thomson Reuters I/B/E/S were looking for revenue of $18.46 billon.
Chief Financial Officer Patrick Pichette said in a statement that revenue grew “despite strong currency headwinds.”
Net income rose to $4.76 billion, or $6.91 per share, from $3.38 billion, or $4.95 per share, a year earlier. Adjusted earnings per share of $6.88 missed analysts’ expectations of $7.11.
(Reporting by Alexei Oreskovic, additional writing by Peter Henderson; Editing by Richard Chang)
The chief executives of four of the world’s largest tech companies, Amazon.com Inc, Facebook Inc, Apple, and Alphabet’s Google, faced a congressional hearing on Wednesday (July 29) where, amongst other questions, they were asked whether the Chinese government steals technology from U.S. companies.
Rep. Greg Steube of Florida, who presented the question, said he was looking for a “yes or no answer”.
The four executives – Amazon’s Jeff Bezos, Facebook’s Mark Zuckerberg, Google’s Sundar Pichai, and Apple’s Tim Cook – offered a mixed bag of responses, with Zuckerberg coming closest to a direct answer.
“Congressman, I think it’s well documented that the Chinese government steals technology from American companies,” the Facebook CEO said via videoconference.
The day-long hearing marked the first time the four CEOs have appeared together before lawmakers, and was also the first-ever appearance of Bezos before Congress. (Reuters)
President Donald Trump urged Americans on Monday (March 16) to halt most social activities for 15 days and not congregate in groups larger than 10 people in a newly aggressive effort to reduce the spread of the coronavirus in the United States.
Announcing new guidelines from his coronavirus task force, the president said people should avoid discretionary travel and not go to bars, restaurants, food courts or gyms.
As stocks tumbled, Trump warned that a recession was possible, a development that could affect his chances of re-election in November. The Republican president said he was focused on addressing the health crisis and that the economy would get better once that was in line.
The task force implored young people to follow the new guidelines even though they were at lesser risk of suffering if they contract the virus. Older people, especially those with underlying health problems, are at the greatest risk if they develop the respiratory disease.
Reporters staggered their seating, sitting in every other seat in the White House briefing room, to follow social distancing measures.
Trump said the worst of the virus could be over by July, August or later. He called it an invisible enemy.
The president has taken criticism for playing down the seriousness of the virus in the early days of its U.S. spread. On Monday, when asked, he gave himself a good grade for his response.
“I’d rate it a 10. I think we’ve done a great job,” he said.
Trump said a nationwide curfew was not under consideration at this point.
Normally a cheerleader for the U.S. economy, he acknowledged the possibility of a recession while brushing off another dramatic decline on stock markets as investors worried about the virus.
“We’re not thinking in terms of recession, we’re thinking in terms of the virus. Once we stop, I think there’s a tremendous pent up demand, both in terms of the stock market and in terms of the economy,” Trump said. The president has long considered soaring stock markets to be a sign of his administration’s success.
Trump said the administration had talked regularly about domestic travel restrictions but hoped not to have to put such measures in place.
He said he thought it would still be possible for G7 leaders to meet at the Camp David retreat in Maryland in June. Trump upset European countries, which make up a large part of the G7, by instituting travel restrictions from European countries without consulting with them first. (Reuters)
A handful of people were seen on the streets of Milan on Wednesday morning (March 12) following stringent measures imposed to contain the coronavirus.
Shops and restaurants closed, hundreds of flights were cancelled and streets emptied across Italy on Tuesday (March 10), the first day of an unprecedented, nationwide lockdown imposed to slow Europe’s worst outbreak of coronavirus.
Just hours after the dramatic new restrictions came into force, health authorities announced the death toll had jumped by 168 to 631, the largest rise in absolute numbers since the contagion came to light on Feb. 21.
The total number of confirmed cases rose at a much slower rate than recently seen, hitting 10,149 against a previous 9,172, but officials warned that the region at the epicentre, Lombardy, had provided incomplete data.
The government has told all Italians to stay at home and avoid non-essential travel until April 3, radically widening steps already taken in much of the wealthy north, which is the epicentre of the spreading contagion. (Reuters)
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