Neat headline, eh? Not mine, alas, but from Good Morning Silicon Valley, reporting on Google’s extraordinary last quarter.
So what if 98 percent of Google’s business comes from advertising. So what if it has a limited track record and can’t be bothered to explain the dynamics of its business. The company is spitting out money like a runaway slot machine. After the market closed Thursday, Google reported first quarter sales and earnings that blew the doors off even the most optimistic of Wall Street analysts’ expectations. The company reported a nearly six-fold increase in profit on revenue that nearly doubled from the comparable period a year ago. Net income for the quarter totaled $369 million, or $1.29 a share, compared with $64 million, or 24 cents a share, for the same period a year ago. Revenue for the quarter was $1.26 billion, a 93 percent increase from the previous year. Wow. The profit results in particular were well beyond The Street’s expectations, and giddy investors eagerly bid up Google shares in after-hours trading. By late Thursday Google’s shares had reached $223.97 — well more than twice the $85-a-share valuation of the company’s initial public offering only last August. “They basically made a mockery of our numbers and Street expectations,” Derek Brown, a senior analyst at Pacific Growth Equities, told the L.A. Times. “It was an extraordinary quarter.”