Google Inc (NASDAQ:GOOGL) announced its financial results for the fourth quarter which ended on 31st December, 2014, on Thursday, 29th January, 2015 and it turned out to have failed to meet Wall Street’s projections. It fell short of the predicted EPS of $7.11 vis-à-vis revenue of $18.46 billion and instead reported and EPS of $6.88 on revenue of $18.1 billion. This release had a negative impact on the stock which recorded a plunge of 3.5% but thereafter recovered as trading progressed.
On CNBC, this news was covered by Josh Lipton and he went on to report that the revenue figure posted by Google Inc (NASDAQ:GOOGL) for 2014, namely $66 billion, was 19% higher on yearly basis. Patrick Pichette, CFO of Google, attributed this shortfall to a strengthening US Dollar as also inventory problems associated with Nexus 6. According to him, the revenue figure that the company had achieved was still commendable since it had been accomplished despite strong headwinds in currency.
While YouTube was declared as boasting of a billion users and Google Inc (NASDAQ:GOOGL) continued to be strong where its core of advertising business was concerned, there was a decrease of 3% in the cost-per-click campaign. This in turn was attributed to geographical factors, device mix and fluctuations in foreign exchange. However, the increase in number of paid clicks implies that the cost of ads on Google was falling at the same time when the number of people clicking on those ads was on the rise.
Silver lining was provided by satisfactory progress made by the cloud platform and the swiftness with which Google play had been developing in terms of infrastructure. Chromecast was also reported as performing well with Chromebooks remaining all-time popular in school. At the end of trading session, Google Inc (NASDAQ:GOOGL)’s shares were poised at $509.70.
This article has been written by Vinita Basu.
Google Inc (GOOGL) Fourth Quarter Revenue Not Up To Wall Street
Google Inc (GOOGL) X Labs Inks Accord with Biogen Idec Inc (BIIB) for Multiple Sclerosis Initiative
6 Most Expensive Fruits In The World
10 Worst Airlines in the World
