Search engine giant Google have had a good week, releasing reports that sales beat projections. Their sales rose to $6.92 billion, which was more than the %6.57 billion projection of analysts which were surveyed by Bloomberg.
So far it seems a good start for Larry Page, who replaced Eric Schmidt as CEO in April. His strategy of targeting new markets such as mobile advertising is helping to generate growth. His investment in new businesses to help compete in the growing social networking sector is paying off. According to ComScore Inc, people spend an average of 6.7 hours on Facebook in June, compared to 4.1 hours with Google.
Google+, the next step in their plan for social networking expansion has already signed up 10 million people and they are sending and receiving more than a billion items each day, according to Page. It may be a long way behind the 750 million users of Facebook, but it has been positively received, even in these early stages.
Gene Munster, a well known analyst at Piper Jaffray Cos said in an interview on Bloomberg West “Google is a real-time indicator in terms of the broader economy; this is a good sign. The improvements in ad units that we saw tonight can continue for the next few quarters.”
Net income rose to $2,51 billion, a gain of 36 percent.
Kitguru says: Still a long way off challenging Facebook, but with Google’s resources and skillset, it may just be a matter of time.