Behind Google Inc. (GOOG) Leadership Reshuffle

Google Inc. (NASDAQ:GOOG) reported impressive second-quarter earnings, but the departure of its long serving Chief Financial business officer Nikesh Arora was a significant loss to the company according to analysts on CNBC. Arora, who oversaw the company’s revenue as well as customer operations stepped down to take over as CEO of Japan’s Softbank.

google

Google Inc. (NASDAQ:GOOG)’s second-quarter results according CNBC’s Jon Frott were strong highlighted by the fact that revenues grew by 20% after benefiting from a drop in costs per click. Google Inc. (NASDAQ:GOOG)’s cost per click had been a bone of contention among many analysts as it was considered extremely high especially on desktops compared to mobiles. Web search results as well as advertising revenue exceeded expectations in the second-quarter allowing the company to beat estimates on overall.

Less depression in the market and higher clicks on the Mobile than the desktop, was one of the reasons why Google Inc. (NASDAQ:GOOG) reduced the costs per click on Desktops according to Former Buzzfeed President & COO, Jon Steinberg. “I think all the analysts came out this time and said you know what, this is a temporary type thing. We are seeing less depression than we used to see, ultimately, the clicks on Mobile will be more valuable than clicks on the desktop.”

International growth was also strong although questions have been raised about the company’s capital expenditure of which Frott maintains should not be an issue as it highlights growth in the company in terms of expansion.

“International growth strong, you just go on down the line. The only thing that you might question is the capital expenditure, but if you want this stock to stay on top, they have got to spend money to do that” said Frott.

Google Inc. (NASDAQ:GOOG)’s second-quarter revenue excluding sales came in at $12.7 billion against analysts’ estimates of $12.3 billion. The company’s CEO, Larry Page, has already highlighted plans to add new features for boosting user traffic as well as attracting more marketers to boost Google’s ad business.


Disclosure: none

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

Top 10 Jobs for 2014 by Salary Gain (Predictions)

Top 5 Digital Trends for 2014

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!