Barney's Blog

Blog archive

A Bad Quarter for Google (Kinda Sorta)

I wouldn't mind having the bad quarter Google just posted. The search engine king reported earnings of nearly a billion dollars on sales of nearly $4 billion -- a neat little 25 percent margin. Meanwhile, revenue was up almost 60 percent compared to the previous year's quarter.

So Wall Street geniuses drove the stock price up, right? Not on your life. The Street was looking for more and slapped Google upside the head by driving the share price down 8 percent in one day.

Meanwhile, Google exec Eric Schmidt is talking cautiously about the future, indicating that the company will slow down its hiring (is that why it hasn't returned my calls?).

Microsoft's results, to my mind, were also superb. It has more than three times the profits of Google (MS had $3 billion) and over three times its revenues (MS had over $13 billion). But as an older and larger company, Redmond's growth rates failed to compare to Google's.

Posted by Doug Barney on July 23, 2007


Featured

  • MIT Finds Only 1 in 20 AI Investments Translate into ROI

    Despite pouring billions into generative AI technologies, 95 percent of businesses have yet to see any measurable return on investment.

  • Report: Cost, Sustainability Drive DaaS Adoption Beyond Remote Work

    Gartner's 2025 Magic Quadrant for Desktop as a Service reveals that while secure remote access remains a key driver of DaaS adoption, a growing number of deployments now focus on broader efficiency goals.

  • Windows 365 Reserve, Microsoft's Cloud PC Rental Service, Hits Preview

    Microsoft has launched a limited public preview of its new "Windows 365 Reserve" service, which lets organizations rent cloud PC instances in the event their Windows devices are stolen, lost or damaged.

  • Hands-On AI Skills Now Outshine Certs in Salary Stakes

    For AI-related roles, employers are prioritizing verifiable, hands-on abilities over framed certificates -- and they're paying a premium for it.