Google Earnings Drop Bad This Quarter & Results Announced in Advance

We get a foul smell out here related to the recent updates by Google. Doubt, if these updates had a strong hand behind the recent Google shares plunge. Read this comment we got immediately after the news regarding Google shares drop got publicized –

                                “Google Stock dropping 10% today.  I am sooooo happy.  I am a web developer and supporter of Google for over 15 years.  I take Google's recent updates as a personal attack.  I am stepping off the Google train immediately!!!  No more Google phone, docs, chrome, tablet, adwords, adsense, etc.... I am ditching everything Google.  The new definition of Google: The founder of antitrust and financial terrorism.  The government must act and declare martial law on Google today!!!”

This is never a normal mail. It shows the frustration and agony of the one (innocent/culprit) hit by the recent Google updates. It’s just a sample among many that we received recently.

Google shares drop


Following the announcement of the 20% drop in Google’s quarterly earnings well before the trading closed; traders without a second thought sold their shares leading the stock get tumbled by 9%.

However Larry Page sounds optimistic in his comments on this drop –

                                       “We had a strong quarter. Revenue was up 45 percent year-on-year, and, at just 14-years-old we cleared our first $14 billion revenue quarter. I am also really excited about the progress we're making creating a beautifully simple, intuitive Google experience across all devices.”

Page also apologized for their action transferred liability towards R.R. Donnelley (Google’s financial documents printing company).

Ads within Search Results

Gary Buchan (Digital marketing Analyst) says,

                          “There are probably a few ugly reports in the pipeline yet. Around 95 per cent of Google's income comes from its advertising services, and while many big brands are maintaining their budgets and are being aggressive to win new customers in the current economic climate, a large proportion of the search engine's advertisers are small businesses who are more exposed. If they're feeling the pinch, small businesses have to cut costs somewhere and often the first thing to go is marketing.”

One among the reasons being attributed to this epic fall, are Google’s acquisition of Motorola Mobility leading to litigation wars between them and Apple. The second one would be the dependence it had on search-based advertising for its revenue, and that advertisers have slashed payments to the Google as consumers turn towards mobile devices, dumping a whole lot of its core business, SEARCH. Though the total number of clicks on ads for Google is up 33 percent, the cost per click has dropped 15 percent. This should be due to advertisers not finding enough conversions from mobile phones that they are able to see from their desktop PCs.

Google is not the one it was long back. Its needy greedy rush behind advertisers and finding space to fit-in ads, all gets nasty results at the end. Google has to fix this issue foremost or else Bing or many other second grade search engines will take its place. While they update their algorithms some of them secretly and the other few following an announcement, user experience will get a C grade if they ditch organic results

Analysts guess that it will surely take quite a long for Google to recover from this fall, due to its investment in high budget ventures like Google Glass and Driverless cars. This should be sort of refreshing news to Apple, Microsoft and Yahoo. But since Google remains a search king for quite a long period, it will know the way out of this not-so-welcoming fall as early as possible.

Eye-catchy comments

  • That graph is very similar to what I see in my income graph after all those crazy updates :)
  • In short Google is f-cked, they rigged search, filled it with fraudulent ads and there's very little else they can do now.
  • it very easy, it not genuine clicks. Google cheat peoples to click on adwords ads. Advertisers find out what conversions from adwords going down dramatically. This is result of 'google above the fold' ads. I am sure more such news coming soon.
  • I´d fire right away from Google the person that thought that by penalizing web sites for havine too much ads, and not showing them on first positions, internet users would clik on AdWords ads instead.. there you have google.
  • This news means it's about time for another algorithm to combat "webspam" and push more organic listings beneath the fold. At least that will be Google's official public response as was the case with the other recent algorithm changes that placed more paid ads on the first page of many search queries. Coincidence? I think not.
  • I wonder if the preferred placement of paid Google shopping had anything to do with this? I could see merchants paying less per click because Google is in charge of the phrases where PPC shopping results will appear and can show results for both early and late stage terms...
  • It seems that their aquisition of Motorola is dragging them back considerably. They have a golden touch with search but just about everything else they touch turns to dust.

Are you one amongst those who rejoice Google's fall this quarter?


Category :

SEO News

Tags :

Google Earnings Drop, Panda Update, Penguin update, Google algorithm update, Google’s quarterly earn

About Prejushya Kalicharan

Prejushya Kalicharan SEO is a challenging field and I try my best to surpass this challenging environment which is unconditionally filled with opportunities, knowledge building and problem solving. I pursue what I .... more info