Google Inc (GOOGL) Hires 3,000 New Employees, Ads Business Declined By 8%


Google Inc (NASDAQ:GOOGL)’s third quarter report missed analysts’ expectations. The company reported $16.52 billion in revenue whereas the expectations were eyeing for around $16.57 billion. The ads and click business only expanded by 17% whereas it was around 25% last quarter. Discussing Google Inc (NASDAQ:GOOGL)’s problems and quarterly tumble in a program on Bloomberg, Hans Nichols, said that Google Inc (NASDAQ:GOOGL)’s latest problems in earnings is not a big deal. Facebook also suffered problems in the last couple of quarters and recovered. He thinks that Google Inc (NASDAQ:GOOGL) is currently making a plunge in the mobile industry and it is the initial backdrop which will be covered very quickly. Nichols reported that Google Inc (NASDAQ:GOOGL) has hired more than 3,000 new employees recently, making its employee mark up to 55,000.

“These could just be growing pains Scott because what you are seeing with Google Inc (NASDAQ:GOOGL) is just transitioning into mobile […],” said Nichols.

According to Nichols, the ads sales on tablets and mobiles for Google Inc (NASDAQ:GOOGL) is 33%. A year ago, this figure was around 20%. He said that now it’s up to Google Inc (NASDAQ:GOOGL) that how it exploits this potential. 59% of gross profit margin is a red indicator for Google thought, thinks Nichols. He said that this figure shows that Google Inc (NASDAQ:GOOGL) is not that profitable as it was some years ago. Google Inc (NASDAQ:GOOGL) does not break its reported earnings and figures in separate areas of mobile and desktop and this remains a problems for the analysts. Nichols said that the revenue miss is not that much and Google Inc (NASDAQ:GOOGL) will recover in the near future. The worst is passed for Google Inc (NASDAQ:GOOGL) and if the company crafts its CPC revenue smartly, the ads business will give back the results.

  David Tepper’s Appaloosa Management Lp hold around 600,000 Google Inc (NASDAQ:GOOGL) shares.

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