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 Match.com, Bankrate.com, 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.