Google (GOOG) reports big profits

Google (GOOG) reports big profits in the fourth-quarter

Google Inc. is expected to report big profits in the fourth semester, after the market closes. These reports consolidate the position of leader in the internet advertising market.
Wall Street analysts predict that Google (GOOG) will post earnings for the period until December of $6.43/share summing a total of $4.88 billion net revenue. If you compare this numbers with the ones last year (same period): $5.10/share and $4.22 billion net revenue, the difference is quite visible.

Google Stock Analysis

The majority of Google profits consist of internet advertising, fact that saved this competitor from the ugly turn of economy worldwide. This turn of events for Google was possible trough the investment of many marketers who found an affordable and reliable alternative for advertising.

Success of Google has left a whole in the path that other rivals want to cross in hope of reaching Google’s profits. Yahoo Inc. (YHOO) and Microsoft Corp.(MSFT) have seen their online advertising sales decline rapidly.

Google services & tools include Google adsense, Google analytics, Google adwords, tools that brought Google so much profit. One key metric for measuring this profits are the number of clicks on Google Ads and analysts think that the increase of this number will bring lower prices for advertising and so some balance in the market.

Shares of Google have risen roughly 10% in the past three months, hitting $589.85 on Thursday and outpacing the roughly 7% gain seen by the NASDAQ Composite Index over the same period. Google’s now target is to hit $700.

In addition, analysts and investors will be interested to hear what Google executives have to say about The “Nexus One” mobile phone that the company recently began selling directly to customers through its own Web site.