Microsoft and Google warn in revenues
July 17, 2008
Google and Microsoft shares were hit when each reported quarterly earnings that fell short of most analysts' estimates. But both companies expressed cautious optimism that their international reach would continue to protect them from the worst; for the first time Google's international revenue outstripped that in the US.
Google and Microsoft shares were hit when each reported quarterly earnings that fell short of most analysts’ estimates. But both companies expressed cautious optimism that their international reach would continue to protect them from the worst; for the first time Google’s international revenue outstripped that in the US.
Google’s shares dropped by 8 per cent after it reported pro forma earnings per share of $4.63, lower than the $4.72 Wall Street had expected. However, Google’s net revenues of $3.87 billion, up 42 per cent, were slightly ahead of forecasts and the company said search engine advertising was proving resilient to the broader downturn in consumer advertising.
In the US and UK, the most developed internet markets, Google recorded an increase in both revenues and “clicks” from advertising in economically sensitive sectors such as cars and travel, with real estate advertising the only area to show a decline, Hal Varian, the company’s chief economist, said
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