Google recorded a 12% increase in revenue to $14.89 billion for the third quarter. The search engine behemoth said net revenue for its Internet business was up 23% year on year to $10.8 billion from $8.76 billion. Net profit was $2.97 billion, or $8.75 a share, compared to $2.18 billion, or $6.53 a share, in the year-ago quarter.
Its mobile phone business, Motorola, continued to bleed, reporting an operating loss of $248 million compared to a loss of $192 million for the same period a year earlier. Revenue fell 34% year on year to $1.18 billion.
During an earnings conference call, CEO Larry Page said mobile continues to benefit Google's YouTube business with 40% of the traffic from the site originating from mobile devices. In the third-quarter 2012, 25% of traffic came from mobile and a year earlier, merely 6%.Page also added that he would not regularly participate in quarterly earnings calls going forward, explaining "you're depending on me to ruthlessly prioritize". "About two years ago when I became CEO again, my goal was to make sure Google maintains the passion and soul of a startup," he said. "Great is just never good enough." Shares gained 8% to $960 in after-hours trading, an all-time high for the ubiquitous tech firm. TheStreet Ratings team rates Google Inc as a Buy with a ratings score of B+. The team has this to say about their recommendation: "We rate Google Inc (GOOG) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, good cash flow from operations and increase in stock price during the past year. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."
- You can view the full analysis from the report here: GOOG Ratings Report
- You can view the full analysis from the report here: COF Ratings Report
- You can view the full analysis from the report here: CMG Ratings Report
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