Interesting news that despite the efforts by Google to present their financials in the best light possible that it doesn't seem savy investors are buying it as stated:
American Technology Research analyst Rob Sanderson said Google's profit wasn't quite as impressive as it appeared because the company enjoyed an unusually low tax rate of 24 percent during the fourth quarter compared to the full-year average of 26 percent. He estimates Google's earnings would have only been $2.99 per share, or 7 cents above analyst projections, if not for the lower tax rate.
What's more, Google's revenue after paying ad commissions was just $40 million higher than the average estimate. Given Google's commanding lead in Internet search, many investors might have been anticipating bigger things.
"Everything was solid, but it wasn't the type of blowout quarter Google has delivered in the past," said Global Crown Capital analyst Martin Pyykkonen.
Even so, "there is no question that this was a very good quarter," Standard & Poor's analyst Scott Kessler. "No matter how you look at it, they notably exceeded expectations. It's just that all the good news is already priced into the stock."
What was really interesting was this little tidbit:
Google also plans to begin selling print and broadcast ads as it tries to develop new sources of revenue.
That truly demonstrates the belief that many of us have that print and broadcast advertising is still the main choice to reach consumers even with the increasing use of the internet and internet advertising.
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