SEO Blog

Just in from CNET, Google’s second-quarter net earnings reached $772 million, beating analyst expectations by about 12%, on revenue which exceeded expectations by just 2%.

Google’s share price dropped 3% on the news!

Amazing isn’t it? Google managed to earn more money per transaction than in the past, and the market goes down. Months ago, many pundits were predicting that Google’s staffing build out to meet demand would cut into this very ratio. They’ve proven everyone wrong.

On Tuesday, Yahoo met earnings expectations, while overall revenue did not meet projections. So they too found ways to earn more profits per transactions. Nicely done.

Yahoo did announce they were delaying their next release / update of their advertising platform. That makes sense. The release would have gone out too close to the busy Holiday season, and the learning curve on using it to its full potential may have negatively affected spends. The market did not approve however, and dropped their stock price as a result.

Overall though, great news for both companies, and something which all their employees should feel proud of. After all, it takes everyone pulling in the same direction for a company to enjoy solid earnings growth without big sales increases.