Google was due to deliver earnings for the first quarter today. Expectations were high, but Larry Page announced, in my opinion, outstanding results.
Expected revenue was $6.3 billion, Google delivered $6.5 billion. Earnings per share turned out at $8.08 vs expected $8.11. Operating expenses rose from $1.84 billion to $2.84 billion. Google shares fell 5% right after the report.
In my opinion as a Main Street Analyst, this is an outstanding result with a rosy outlook. Google hired over 2,000 employees during the first quarter which, in my opinion, takes care of the sharp increase in operating expenses. Google does not hire just to fill offices, I trust there is substantial business potential behind this move. This, combined with paid-click growth and increased advertising prices allows a positive outlook on the company.