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Google Spends On Hiring, First Quarter Profits Disappoint Wall Street

Google's stock has come under pressure as its first quarter profits fell short of Wall Street predictions.

Reports indicate that the difference may have been caused by larger-than-expected investments in HR and Google still managed to increase net revenue by 29 percent year-on-year, but ts shares still dropped by more than 5 percent.

Google announced its net income to be $2.3 billion ($7.04 a share) compared to $1.96 billion ($6.06 a share) in the first quarter of 2010.

Google is expected to meet its commitment to hire 6,200 new employees this year, the largest single-year increase in the firm's history, despite the Wall Street nervousness over short term profits. Google currently employees about 26,000 emplyees, up a quarter from last year.

Larry Page, having replaced Eric Schmidt as the company’s Chief Executive Officer earlier this month, is unlikely to change Google's overall strategic plan.

Expressing his desire to continue investing in long-term goals, Page said, "It's clear that our past investments have been crucial to our success today - which is why we continue to invest for the long term." ( (opens in new tab))