Google powers on.
A +23% rise in revenue for its Internet business, in Quarter 3 to 10.8 billion usd, (all revenue was nearly 15 billion usd) boosted the stock to circa 1,000 usd, a new record.
Although their average cost-per-click rate went into further decline, it was well offset by the high jump in volume.
Basically, Google is suffering from lower margin but a rapid increase in volume. The total amount of paid "clicks" is up +26% year on year (yoy).
Yahoo on the other hand, reported a drop in revenue the same week so it's likely that Google's growth is both organic and that it's taking market share from competitors. It's also enhancing its cashflow position as well as better Ad revenues up +17% yoy.
Motorola, which they own, showed a growing loss in Q3 of 248m usd and it's a continuing bad loss when compared to previous years. A 24% increase of a loss yoy. So still problems there.
But these are strong, effective, healthy results at Google. It also shows the company has adapted well across all devices, notably mobile (40% of YouTube traffic is now mobile), and particularly for their 'Adwords' product.
To be fair, Google is the best Search product in the market and continues to retain customer loyalty and has become intuitive. It is also well-run with a good employee profile and practices.
Their brand strength and cash warchest, is continuing to make things difficult for their competitors.
In time, they might consider to acquire them and be done with it.
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