Google stocks tumble as profit slightly dips

On Thursday,  news came from Google that in the past quarter its profit margin had dipped a bit since the previous year, even though the revenue did reveal a positive increase.

During the third quarter, around 5% of the net profit did plunge down in the very same period, a year back to around to $2.8 billion, whereas the revenue saw a rise of around 20% to $16.5 billion.

The Google shares felt the abrupt tumble down tremor, 2.3% to $512.20 due to the result during the after hours, which greatly disappointed Wall Street.

At the 24/7 Wall, finance blog, Paul Ausick, stated that the revenue of Google did go down below expectation and undoubtedly the revenue from the end of “paid clicks” was furthermore, high end disheartening.

The expenditure of Google, to top it all is quite high, which spends around $2.4 billion for its data centers.

Patrick Pichette the chief finance also stated that the technology giant did perform well and had quite delivered quite a good performance in the present quarter. He also continued stating that the organization was enthralled and excited about their developments in advertising and other emerging businesses which they were involved in.

Patrick Pichette said that the costs got a bit higher because they were insistently hiring during that stage and had around 3,000 jobs added so that the firm’s headcount could reach up to 55,000.

While in the area of online advertisement, undeniably, Google has been a leader, yet we have to admit that it is facing loads of challenge from remarkable companies such as Facebook.

As per the recent research done by eMarketer, a research firm, it is expected that Google will vaguely raise its online advertising market share to around 32.4% in the present year. While on the other end, Facebook will grab to around 8% of its share. Nevertheless, at the same time, we cannot ignore the fact that Google, is not doing well with its market share in The U.S., as per the research firm.

Also quite early during this week, Google ramped to mobile arsenal, and brought in some advancement with its Nexus line range with some new smart phones and tablet. It also unfolded the news that it had restored Android software as dubbed “Lollipop.”

Moreover, Google also declared about the commencement of streaming media player for videos, movies and music, which through the Android TV device permits its users to play games.

This definitely provides Google and its Android partner’s greater layout to give battle against Apple, which has also successfully launched two advanced iPhones with large screen and revealed about its new iPads this Thursday.

Omid Kordestani, who was declared officially as Google’s chief business officer, stated that the company has undergone continued momentum in its core business section together with few enthralling innovations in several areas.