Posted by
alfredlester on Thursday, April 14, 2011 7:06:36 PM
SAN FRANCISCO (Reuters) - Google Inc&&9;s stunning 54 percent Spending surge spooked investors Already Worried That ITS New CEO May Take His Eye off the bottom line to chase back croissance, driving shares of The World&&9;s Leading Internet search engine more than 5 percent lower.
Investors zeroed in on The surge in dépenses to $ 2.84 trillion, a 29 percent dwarfed Which jump in net revenue and a record Reflected Hiring spree and company-wide salary raise.
Analysts now expect co-founder and new chief executive Larry Page to keep Spending on new products annually to spearhead aggressive push Into Areas Such as social networking and mobile business.
The 38-year-old media-storm technology wiz - Who Took over as CEO this month from decade-long veteran Eric Schmidt - cam was a conference call for analysts With just a few "minutes, eager to hear Some disappointing history plans to Growth and jump-start innovation.
Google plans to hire more people this year Than 6.000, 2.000 after Taking a record on board in The Quarter and raising salaries by about 10 percent across the board on January 1.
"You got dépenses Growing Faster Than Some People Were back and caught by surprise By The willingness of The Company to Spend," BGC Partners analyst Colin Said Gillis.
"Goal Larry Page has signaled pretty clearly" That He Is Going To Be driving up dépenses. If The Targeted and are dépenses result in future revenue streams, Then good for Larry. If not, That results in year Spending undisciplined approach. "
Expected page is to bolster innovation and cut bureaucracy have battles Google social networking leader Facebook and Apple Inc..
Shares of Google, The Market Which underperformed in 2010, are down 9 percent Roughly Since The company in January Announced That Page Would replace Schmidt.This week, Page Moved swiftly to streamline decision-making at Google&&9;s reshuffling by Upper Ranks reporting lines, investors are anxious about goal How the management changes "could affect The Company free online credit report.
WHAT&&9;RE YOUR INTENTIONS?
The company posted Net Income of $ 2.3 Billions in the first quarter, or $ 7.04 a share, up from $ 1.96 billion, or $ 6.06 a share, in the Year-ago period ".
EXCLUDING certain items, Google Said It Earned $ 8.08 a share, below-the average analyst expectation of $ 8.10 a share.
Google&&9;s net revenue rose to $ 6.54 Billions in the first quarter, above-the $ 6.32 Expected one billion by analysts.
The average cost-per-click to Advertisers icts search for ads in The First Quarter Grew about 8 percent year-over-year and 1 percent Decreased From The Fourth Quarter.
Page, With His brief speech on Thursday, restes Uppermost is very much investors&&9; minds.
Google is ramping up efforts to supplement core search advertising business icts With back from display and mobile ads. And the company IS increasingly Focused on social networking & the local ad market, where, rivals Facebook and online coupon service Groupon Rule the roost.
Page&&9;s attitude Toward Spending On Such Strategic Areas, "as well as one less crucial Such initiatives have self-driving cars, & the potential impact on Google&&9;s profit margins are high are investors&&9; list of concerns.
"I do not think historical focus IS going to put something to managing margins. I think historical focus IS going to put something to Topline Growth and managing new business areas", "Oppenheimer & Co analyst Said Jason Helfstein.
"The key Here Is Are Weak margins and as a result There&&9;s Still a question about The Company&&9;s long-term Spending intentions."
Shares of Google Fell Nearly 5 Percent to $ 551.34 in after-hours trade.
(Writing by Edwin Chan; Editing by Richard Chang)
Google&&9;s cost-surge unnerve Street, shares dive
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