The Year End Advertising Again Rises Google Inc (NASDAQ:GOOG) Profits

Northern, WI 1/25/2013 (avauncer) - Google Inc (NASDAQ:GOOG) reports high profits and has crossed analysts expectation because of consumer spending in holiday season EPS rose to $10.65 in the fourth quarter results. Google says analysts projected EPS of $10.50 with reference to Bloomberg data. Net income rose up to 6.7% to $2.89 billion or $8.62 a share excluding taxes.

The reason behind high earning with Google is the retailers pouring into online advertising and extended gift buying season. US e-commerce is up to 14% in the last 2 months of 2012. According to Comscore Inc retailers began promoting web deals, which helps Google to compensate more on mobile advertising, which tends to be less lucrative.

Benjanim Schachter an analyst at Macquarie securities USA Inc says people would generally expect something more on the downside and more over the transition to mobile is still a work in progress and this shows they manage the process well. California-based Google rose 5.5% to $741.50 at the close in New York. According to Coverio Inc mobile ad rates can be 55% less for promotions, still Google managed to keep a pace of decline in the advertisement pay on promotion. This led to a decrease is cost per chick to 6% following a decline of 15% in the previous period. Later total no. of clicks increase to 33%  in the third quarter from 24%.

Stifel Nicolaus company analyst says Google is doing pretty good and it continues to monetize its searches very well. Revenue rose to 39% to$ 12.2 billion compared with & 12.4 billion estimated by analysts. Larry page, Chief Executive Officer says they ended with a strong quarter in 2012 and are incredibly optimistic about the opportunities focused on technology benefits. He refrained earning due to difficulties.

Nikesh Arora chief executive officer says that Google benefited from strength in North European markets and represented 54% of sales in international markets. Google made a $12.4 billion purchase of Smartphone’s and it cut 4000 Motorola jobs. Arris group Inc agrees to take Motorola home at $2.35 billion in December. So now it can focus on its handset business which includes Google Android operating system and it still faces net operating loss of $353 million.

Patrick Pichette chief financial officers say that their goal is profitability in the areas of their investment and they have made a progress. He says android has made company push the software into their mobile phones which gives them Google access to user data around the world.

Even with high profits Google could come under pressure from Facebook Inc (NASDAQ:GOOG) owner of the world’s largest social networking services which is about to introduce new search tool for the users to discover places people photos and interests on the service.

Google Inc (NASDAQ:GOOG) is up by 1.66% to a close at $753.83  on the other hand Comscore Inc (NASDAQ:SCOR) is up by 1.70% to close at $14.34. Facebook (NASDAQ:FB) is up by 0.84% to close at $31.08