GOOG Beats Bears and Bulls

Great results from Google tonight. End to end, this is impressive stuff, with Google beating the high street numbers in both revenues and earnings. It’s going to be entertaining watching Google bears (perma- and otherwise) try to find the sow’s ear in this particular silk purse.

Just as an aside, while Google capex is up 68% year-over-year, it has declined 30% in consecutive quarters. That is mixed news, but it’s worth pointing out that Google still says capex will grow faster than revenues. What are these guys building? Inquiring minds want to know.

And Yahoo’s muttering about weakness in ads? Let’s just say if this is weak, I’d hate to see strong.

[Update] Good and appealingly empirical live-blogging of the call here from John. K.


  1. Paul, One of my former professors from MIT joined Google to be their energy czar of sorts. Translation: They are optimizing a power-efficient hardware infrastructure for distributed computing, that is an insanely complex problem. Just an example of the kinds of things they’re investing in.
    And it looks like, a lot of it is being built from scratch, since nothing of that scale exists in off-the-shelf format. Sramana