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Google earnings 'silenced the cynics'

The slowing U.S. economy did not seem to slow down Google, which reported a surprisingly strong surge in first-quarter profit Thursday. Google's net income jumped 31 percent to $1.31 billion and revenue swelled 42 percent to $5.19 billion compared with the same period last year. The report trumped many Wall Street analysts, who had reduced their forecasts for Google's growth based on third-party research that suggested fewer people were clicking on Google ads.

"Google has completely silenced the cynics," said Jeffrey Lindsay, a senior analyst with Bernstein Research. In a conference call with analysts, Chief Executive Eric Schmidt said Google was still not feeling the drag of the struggling U.S. economy. Google executives made similar statements in January. "It's clear to us that we are well-positioned for 2008 and beyond, regardless of the business environment we find ourselves surrounded by," Schmidt said.

SiliconValley.com

Posted by | Fri, Apr 18, 2008 - 01:00 PM