Google Inc (NASDAQ:GOOG) released its earnings report for the three month period ending June 30 today after the market closed. The company showed earnings per share of $9.56 for the three month period on revenue of $14.11 billion. On today’s market, stock in the search giant trended downward to close at $910.68 per share.
Analysts following Google Inc (NASDAQ:GOOG) were looking for earnings of $10.80 per share from today’s earnings report. The same analysts had a consensus estimate of $14.5 billion for revenue in the three months period. In the same three months of 2012, Google managed to pull in $12.2 billion in revenue and turned that into earnings of $10.12 per share.
Ben Graham Lecture Notes
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Great expectations For Google
Google Inc (NASDAQ:GOOG) has been hotly tipped by analysts to be the dominating force in the tech industry in the next decade. The company’s range of businesses, coupled with its clear ambitions and its positive relationships with so many other companies, put it in a better position than many of its rivals, and it may be in a better position than the rest of the pack.
Google Inc (NASDAQ:GOOG) is certainly in a great position to grow, but there are obstacles in the way that make it difficult to bet on the Mountain View, California company while excluding the likes of Apple Inc. (NASDAQ:AAPL). Google still has to deal with European legal problems, and it’s likely not the company’s last time in front of a regulator.
Google’s hardware ambitions
Analysts are still trying to figure out whether or not Google Inc. (NASDAQ:GOOG) is really serious about getting into hardware. The company bought Motorola back in 2011 and has proceeded to do very little with the company. With Google Glass on the way analysts are wondering whether or not the company is actually looking at wearable computers as a business opportunity, or just as a diversion, like the self driving car.
Google Inc (NASDAQ:GOOG) already designs tablets, like the Nexus 7, though it appears to have little ambition in actually participating in that business properly. The company is apparently working closely with Motorola on the Moto X, but it will not call it a Google Phone.
Google is an enigma in so many ways, and yet it enjoys a very high valuation. That’s a dangerous point for investors and analysts to balance, which should be clear from the company’s conference call at $:30 pm EST.