Posted on Friday, July 15th, 2011 at 6:07 pm.
Google’s second quarter profits shattered analysts’ predictions and provided an immediate boost to share prices.
According to a statement released by Google, the company’s earnings in the second quarter increased overall by 32 percent to 9.03 billion – with costs factored in, this is an increase of 36 perecent to 6.92 billion. The news was delivered Thursday and was followed by a stock surge of 60 points in after-hours trading.
The second quarter of 2011 marked the first period in which Larry Page has been Google’s Chief Executive Officer. Page replace Eric Schmidt, who became executive chairman after holding the CEO position for a decade. The company had seen mostly negative activity after Schmidt announced his intentions.
Google’s costs continue to increase, but the levels are far more moderate than in past quarters, when the company was investing heavily in new products, advertising, and personnel.
“I’m happy with the investments we have made in people though we are probably even a little ahead of where we need to be with headcount growth, at the edge of what is manageable now,” Page said. “Great companies are not greater than the efforts and ingenuity of their people.”
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