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Google (GOOG) states on its Q3 earnings call (webcast, live blog) its mobile business (ads +...

Google (GOOG) states on its Q3 earnings call (webcast, live blog) its mobile business (ads + Google Play, though mostly ads) is now on an $8B/year run rate. A year ago, the company noted its mobile ad business was on a $2.5B/year run rate. Larry Page, who was sidelined for some time by an ailment that caused him to lose his voice, still doesn't sound like his usual self. Shares +0.7% AH after falling 8% in regular trading. (earnings slides - PDF) (more)
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Comments (3)
  • BigJ1260
    , contributor
    Comments (206) | Send Message
     
    Thursday, October 18, 4:56 PM Google (GOOG) states on its Q3 earnings call (webcast, live blog) its mobile business (ads + Google Play) is now on an $8B/year run rate. A year ago, the company noted its mobile ad business was on a $2.5B/year run rate

     

    What a cherry pick by Larry -
    Duh-you are growing mobile , but what is $ Profit & Margin% vs PC ?
    How fast is PC search declining ?
    How much will you lose on Motorola next 12 months ?
    How much will you lose selling tablets and android OS at cost ?
    What is risk of being investigated for privacy and anti trust issues here and in Europe ?

     

    Given all the above- how smart is it to invest in space ships, google cars and google glasses
    18 Oct 2012, 05:23 PM Reply Like
  • 426260
    , contributor
    Comments (131) | Send Message
     
    BigJ1260 - good questions.

     

    Regarding the mobile business run-rate, Google Play may help boost revenues, but it will probably only add a negligible amount to profits, since Google pays 70% to content developers and must use the rest to meet operating costs of the store. As I have stated on other posts, Peter Oppenheimer, the CFO of Apple, has stated that Apple runs the iTunes and AppStore at about break-even.

     

    Also, an important question regarding decreasing cost-per-clicks is whether mobile search is actually substituting for desktop search, or is it incremental to desktop search? Of course, if mobile is substituting for desktop, Google has a more difficult task in front of it.
    19 Oct 2012, 01:15 PM Reply Like
  • Joe Dirnfeld
    , contributor
    Comments (1128) | Send Message
     
    Despicable and arrogant company, rotten from the top. Would never invest there.
    18 Oct 2012, 07:03 PM Reply Like
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