Good and Bad news for Google after first quarter results posted

Google have reported their financial information from the first quarter of 2010 and it has provided both good and bad news for the search engine giants.

Despite the positive news that the company have witnessed a 23% rise in revenue, Google also reported that shares in the company have fallen by 5%. This surprising fall in shares is due to investors disappointment at the fact that online advertising through Google has not done as well as had been expected.

Key indicators for the quarter appeared strong according to analysts including an impressive 7% rise in average cost per click which in turn feeds into sales. On this evidence it would seem that investors are asking a lot of Google considering that the company has been consistently beating its earnings forecasts for the last 8 quarters.

As a result of the high standards set by the investors the company’s shares have slid by 5% to $565.50.

In a move to rectify this Google have announced that they have hired 800 new employees, which is their biggest highest employment jump since the first quarter of 2008. The company is planning to keep this high rate of employment throughout 2010, underscoring their hopes of an immediate rebound in the growth of internet advertising.

The net income posted by Google this week was $1.96 billion (£1.27 billion) or $6.06 if you prefer to work in terms of price per share. This is up from $1.42 billion or $4.49 a share in 2009, a significant rise.

Google’s revenue in the first quarter totalled $6.77 billion compared with $5.51 billion in the same period in 2009, so it would seem that the good news is likely to outweigh the bad as Google continue to move from strength to strength.

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