Google’s Profit Growth Declines to Meager 17%

After managing a 46% profit increase in Q3, Google could only manage a meager 17% growth in Q4 2007 (compared to Q4 2006). Wall Street rewarded Google with a 7% after-close stock plunge.

Want the full details?

Google earned $1.21 billion, or $3.79 per share, during the final three months of 2007. That’s up 17 percent from net income of $1.03 billion, or $3.29 per share, in the same period a year earlier.

More Bad News

The number of people clicking on AdWords rose just 9%–which was less than analysts expected–mostly in part due to Google’s efforts to filter out what it calls “accidental” clicks.

More bad news came from the revelation that the company struggled to maximize the revenue from its partnerships such as MySpace.

Google Set for World Domination

If Yahoo’s earnings were disappointing and the economy slowing, there’s a piece of bright news today. Google is announcing their earnings today. The word Forbes used to describe what to expect from Google stock is stellar growth. The number in the article is a 40% increase in net income. This despite Google losing a small slice of the search engine market share last month.

Yahoo’s profit fell 23% and they mentioned Google as a factor as their revenue freefalls.

“Yahoo’s failure to crack Google’s search engine dominance has contributed to eight straight quarters of declining profit and three years of slowing sales growth. If the U.S. economy slumps, Yahoo will be dealt a bigger blow than Google.”
– Colin Gillis, an analyst at Canaccord Adams Inc., of New York.

Apple Using Google as a Verb

Every branding professional you’ll meet will tell you that you never ever refer to your brand as a verb. Phrases like “I Googled that” or “I Xeroxed this” are poison to the ears of those who understand trademark law.

Without getting into the intricacies of trademark law (which I don’t fully understand anyways), the short explanation is that you should only reference your trademark as an adjective. An example of a properly used trademark would be “Google™ Search Engine”.

With this in mind, I was a little surprised recently when going through my iPhone to find Google business partner Apple using Google as a verb.

Let me explain. The iPhone has a keyboard which pops up every time you position your cursor in a field which allows you to enter text. This includes your browser address bar, web forms, search fields, emails, etc.

Pilgrim’s Picks for January 31

Wow, where did January go? It’ll be Spring before you know it!

In the meantime, enjoy these picks:

Google’s Page & Brin Will Call it Quits in 2024?

Now here’s a tidbit of info that might make Wall Street feel warm and fuzzy. Google co-founders Larry Page and Sergey Brin made a pledge to each other–not sure if a ring exchange was involved or not–to stay together for twenty years.

According to an interview in Fortune magazine, the deal was struck back in August 2004–just prior to the company’s IPO. To add a little twist to the relationship, CEO Eric Schmidt is also in on the deal–oh good, I get to use “menage à trois” in a blog post! :-)

“We agreed the month before we went public that we should work together for 20 years,” said Schmidt, who added that he will be 69 years old by that time. Page would be 51 and Brin 50.

ICANN Proposal to Eliminate Domain Tasting?

Over the last month I and others have written quite a bit about domain tasting and how registrars are taking advantage of the policy, allowing them to capture potential domain names that their customers are searching for.

ICANN describes domain tasting as “the use of the Add Grace Period to test the profitability of a domain name registration. The AGP is a five-day period following the initial registration of a domain name when the registration may be deleted and a credit can be issued to a registrar.”

The Washington Post has written an article discussing ICANN’s most recent proposal to curb domain tasting and eliminate the practice. By no longer refunding the fee that ICANN imposes on each domain transaction ICANN believes this will eliminate the process of domain tasting, at least in large quantities.

Linky Goodness, January 30

This Linky Goodness is near and dear to my heart, most especially because . . . it’s Wednesday.