Posted January 31, 2008 12:19 pm by with 9 comments

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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.

Efficient Frontier, whose clients include,, and other such sites, noted that in the last quarter Google accounted for 77% of their client’s online advertising budget. Almost all their clients (97%) put additional spend into Google advertising. Internationally, Japan is one of the only countries where Google doesn’t dominate (for EF’s clients and overall). Otherwise Google accounts for more even more dominance outside of the US. Google search and content covers more than 85% of the marketplace in Australia, UK, and Europe.

The Forbes article says that half of Google’s revenues come from outside the US. I don’t have numbers in Japan or China but China’s search engine, Baidu, recently reported market share increase to 62.1%. I admit I root for Baidu probably because by the time I realized I should’ve bought Google stock it was too high so I bought into Baidu instead.

Stay tuned for more on Google stock after closing today.

  • Hi Janet,
    Thanks for quoting our data. Here’s the link to the post that cites Google’s global share.

  • Alex -S-

    I’m sure part of the reason google stock is so hot is also down to all the extras – gmail, gcal and more recently “apps for your domain”

    I know Y! has most of these – but the whole google package is just still that notch slicker and presented nicer too.

    I mean – for most folks, search is search – whether its the big G or the big Y! – but google just seems to do a better job of getting the word out there.

    As more companies jump on the Apps bandwagon i’m sure google will only continue to boom. i read they’re playing with project management tools for apps users now – thats an interesting development.

  • Great post thanks dude 🙂

  • Baidu in China and Yandex in Russia are holding their own against Google, and once Microsoft both 1. buys Y! and 2. properly organizes their own search engines we will finally see 2 players in this arena.

  • I wish that google would just stop. I do searches using three different search engines. A lot of the stuff that google comes up with in the searches is just not even closely relevant to what I had entered. It seems that the guys that give them the most money get the most attention and are listed in the beginning of the search results even though it’s not what your looking for.

  • Google his the next Micro$oft world dominator. He will create his own standard and we will don’t have choice to pay for.

  • At present google is stronger than all…

  • At this point, I have to agree that G seems unbeatable, but you never know what could happen if Y were to be sold 🙂

    Alan Johnson

  • Baidu has the biggest user base on the Earth.