Google, the California based search engine giant, has posted a rise of 17 percent in its revenue in its Q4 results, further indicating that the US economy is on the path of recovery after the devastating recession that severely affected the technology sector.
The company reported that revenue for quarter ending 31st December, excluding the costs incurred during traffic acquisition, was $4.95 (£3.06) billion, higher than the $4.92 billion, which was predicted by market analysts.
Eric Schmidt, Google’s Chief Executive Officer, commenting on the increase in the company’s revenue, told analysts during a conference call that “The digital economy continues to grow very rapidly, and specifically we're moving literally eyeballs and advertising online. And we continue to benefit from that...We're back in business full blast.”
Industry experts are of the opinion that Google’s revenue, which rose 17 percent between October and December, is the result of the meteoric increase in its advertising income during the Christmas shopping season.
The company also reported an increase in the net profits that reached $1.97 billion, as compared to the $382 million net profit it had posted last year.
The favourable Q4 results for Google come amidst the tense situation that has cropped up between the US based company and China.
Expect Google's share to experience some serious turmoil over the next few months despite some good results. At the moment, its shares are down by 3.65 percent making it one of the biggest losers of the day on the Nasdaq, wiping out around $7 billion off its market capitalisation.
(The Global and Mail)