Google Shares Jump as Profits Impress
Sergey Brin, Google's co-founder and president of technology, said that mobile searches are "growing very rapidly" due to market growth. Brin added that the entire library of the company's YouTube video-sharing service is available for mobile users, and that Google has seen "mobile playbacks increase tremendously."
Regarding Google's failed auction bid for a block of the Federal Communications Commission 700-MHz spectrum, Brin said he was still satisfied in that the open access of the spectrum's prime C-block will benefit developers and consumers alike. "I know we did not come back with any wins, but I feel it's been an important experience for us," Brin said.
Because the sale price of the C-block topped the $4.6 billion reserve, auction winner Verizon (VZ) must use the spectrum as an open network, allowing any mobile device to run on it. Google had pushed for the development of the C-block into an open network in hopes it would increase wireless competition, as the company plans to launch its free Android cellphone software platform for several manufacturers later this year
As usual, the company did not provide any guidance for the second quarter or the full year.Google's earnings release comes a week after rival Yahoo! (YHOO) reached out to Google to outsource some of its search ads. Yahoo! said it will begin a limited test of Google's AdSense, which will deliver relevant Google ads alongside Yahoo!'s search results. The news of Yahoo!'s arrangement with Google put a snag in Microsoft's (MSFT) quest to acquire the Internet search engine. A day after Google last reported quarterly results, Microsoft offered more than $44 billion for Yahoo!. Should that deal, which Yahoo! hasn't embraced, actually close, it would create a major challenger to Google's dominance in the Internet space. Thus far, this has been a generally upbeat week for big technology stocks, in terms of their results. In recent days, chipmaker Intel (INTC), hardware and software developer IBM (IBM) and Internet auction house eBay (EBAY) have all topped analysts' quarterly earnings estimates.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV