(2)
In the past two days, Google and Microsoft have announced earnings. Google's announcement is over here and Microsoft's announcement is over here.
The market had time to react to Microsoft's announcement of cutting 5,000 jobs and a weak outlook on sales and products. Microsoft (MSFT) saw a 11.71% drop in their stock price based on that announcement. Google released their earnings report yesterday, after the market closed. It is hard to predict if their stock price will rise or fall but they are currently down 2.67% in the after market. Although Google's revenue was up 18%, they saw a 68% drop in fourth-quarter profit.
We have lots of discussion around the two announcements. Google discussion at WebmasterWorld,Microsoft job cuts discussion at WebmasterWorld and Microsoft earnings discussion at WebmasterWorld and DigitalPoint Forums. Plus respective coverage at Techmeme.
Comments:
Vickey
01/23/2009 12:21 pm
Google's revenue was up 18% but I think they were expecting it to be a little higher...
Michael Martinez
01/23/2009 05:08 pm
The fourth quarter revenue is what dropped, which coincides with widespread reports of people earning less on AdSense (and, NO, it wasn't just the arbitragers who got slammed) and also with widespread reports of companies scaling back on PPC budgets. Google said it was mostly larger companies that were scaling back on PPC, but they made one other interesting comment (and I'm paraphrasing within the quotes): "For every company that goes out of business, there is another behind it waiting to bid on the auctions." So Google regards PPC advertisers to be a large enough market to sustain them through The Great Recession of 2008-2009.