Google continues to dominate in its core business, search advertising, which accounts for more than 90 percent of its revenue. But as Google grows and search becomes increasingly competitive, analysts and investors are beginning to wonder what is next for the company.
Google Inc.’s second-quarter earnings missed analysts’ target as higher expenses and the fallout from the European debt crisis dragged down the Internet search leader. Google missed Wall Street’s expectations for the bottom line. The search giant notched non-GAAP EPS of $6.45, a bit shy of the $6.52 consensus. Revenues, excluding those shared with partner websites, were $5.09 billion, better than the $4.98 billion consensus. After hours, the shares are down roughly 4%.
The company said its net income rose to $1.84 billion, or $5.71 a share, from $1.48 billion, or $4.66 a share. Excluding the cost of stock options and the related tax benefits, Google’s second-quarter profit was $6.45 a share.