James Gautrey Talks Google Inc (GOOG)’s Results and Acquisitions

Google Inc (NASDAQ:GOOG) reported second quarter earnings that although showed improvement from last year’s numbers, left a lot to be desired about the company especially its chances of surviving the rapid shift to mobile advertising. On CNBC, James Gautrey, a global specialist for the technology and telecoms sector at Schroder, discussed Google’s earnings and revealed why he thinks the company is interesting.

google

Google Inc (NASDAQ:GOOG) reported 22 percent increase in revenue to $15.96 billion. The revenue also surpassed Wall Street projection of $15.6 billion for the quarter. Net income also increased by 6% on a year-over-year. Something that caught the attention of most investors was the decline in cost-per-click (CPC), which is the price that advertisers pay for each click on an ad. The decline was linked to the increased shift to mobile advertising, where ad formats are different from the way they are presented on the desktop.

Gautrey told CNBC that there is a problem when people start to focus on CPC when that is not a major thing to be worried about Google Inc (NASDAQ:GOOG). He said that the decline in CPC cannot be interpreted to mean Google’s struggle to monetize mobile.

“I think there is a danger that people focus too much on monetization in mobile. The CPC [...] has been a massive focus for the investors over the last couple of years. [...] Twenty-two percent [revenue growth] is incredibly healthy. [...]  I’m less concerned about the CPC focus that the market gets into,” remarked Gautrey.

Google Inc (NASDAQ:GOOG)’s trail of acquisitions has also been an issue of great concern among investors in recent times. The company appears to be investing in off-beat projects that some have worried whether they will pay a dividend someday. Gautrey agrees that Google’s acquisitions baffle many.

 “I think, with Google, the nature of their acquisitions tends to worry people. They are a little bit off-beat [...] and people struggle to make sense. If you look back the last 10 years, in the history of acquisitions they have actually done very well,” he said.

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

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

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!