Google quarterly profit swells 46 percent

Earnings topped Wall Street expectations, fueled by accelerating market share gains and tighter cost controls.

The story "Google quarterly profit swells 46 percent" published October 18, 2007 at 1:42 AM is no longer available on CNET News.

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[Jesse Chan]

$200 Billion Market Cap!

Wow, by beating earnings they're sitting at around $200 Billion in market capitalization! How high can they go? <a class="jive-link-external" href="http://fishtrain.com/2007/10/08/google-at-1000share/" target="_newWindow">http://fishtrain.com/2007/10/08/google-at-1000share/</a>

[flickrz]

kidding......

"Overall, good results, modest upside, but not a blow-away quarter," Global Crown Capital analyst Martin Pyykkonen said.<br />Are you kidding? 57% revenue and 46% profit increase. Market Cap of $200 billion. And, the analyst is saying "not a blow-away quarter". Don't know what is called "blow-away" then? perhaps, 100% increase in revenue and profit with $500 billion marketcap?

[dep710]

It's all relative

The thing to remember is that this is all relative, it's all about the already set expectations. The analysts were expecting this type of growth (57%), and Google did just a little better (59%). Hence, this is "not a blow-away qtr). That's why sometimes you see companies grow at 50%+ percent and they still take a bad hit when analysts expected 80%. It's like when you buy a car that's suppose to do 0-60 in 5 seconds and it does 4.9 -- you'll be happy, but not "blown away"; as opposed to if it did 0-60 in 3 seconds. Same on the reverse -- if it only did it in 6 seconds (which is still pretty damn fast) -- you'd be disappointed. It's all relative.