No need to comment a lot on this one, I guess everyone will have already read the news some place else !
Google reported its quarterly earnings yesterday thursday after maket close, and once again they were mind blowing : sales grew by 70% while profit almost doubled. Net margin stands at 28% !
What a contrast with Yahoo which reported a meager 19% increase in sales and a 37% drop in profit. On top of that, they gave a dim outlook on Q4, which is mainly why the stock dived afterwards (the bad news relative to Q3 earnings were factored in the price already).
In absolute numbers, Google earned almost 5 times Yahoo's net profit. Google continues to gain market share in search while Yahoo is losing shares. Googles take an increasing piece of the advertising pie and leaves the crumbs to all the others.
Google's stock price will benefit from a strong lift today which should push the GoogMic index back to the 45% area.
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