Google Makes $3 Billion Profit; Wall Street Not Impressed


In a biggest setback, Motorola, the company which was acquired by Google last year, made revenue of $998 miilion, up from $843 million in the same period a year ago, but the company posted the operating loss of $342 million, which was bigger than last year’s $199 million.

Though Page didn’t give forecast on when Motorola will turn in to profit making unit, he did say that he is all excited about launching the company’s very own flagship Smartphone, called Moto X soon. He didn’t comment on the device any further.

However, Page, in comments to company's earnings conference, said the results represent an "amazing performance for a company that has yet to celebrate its fifteenth birthday!"

The average price of the Google’s online ads slide more than expected 6 percent year-on- year, compared to the first quarter’s 4 percent. According to market analysts, Colin Gillis of BGC Partner group, the consumers don’t click on mobile ads as often as they do on PCs.

Now Google is trying to drive up prices by the way it sells ads online on Smartphones and tablets by its enhanced campaigns. About 6 million advertisers have already switched to Google’s new pricing system and remaining will join by end of the month.

Page described the switch to enhanced campaigns as the biggest change that Google has ever made to an online advertising platform launched more than a decade ago. “I think we’re still in the very, very early stages of that,” Page said. “We changed a tremendous amount for how our teams operate, how our advertisers operate, how everyone buys those ads, what the users see, and we’ve done it pretty well.”

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