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Google, Inc. Earnings: Will Mobile Continue to Drag on Profits?

Shares of search giant Google (NASDAQ: GOOG  ) (NASDAQ: GOOGL  ) have cooled their jets in recent months after their 2012-13 run-up, as concerns that the explosion of mobile ads Google's experienced of late will continue to dampen its profits in the years to come.


GOOGL data by YCharts; chart and video data differ because of GOOG price changes.

To be fair, this issue isn't unique unto Google. We've seen the same dynamic largely play out with Google's Chinese equivalent, Baidu (NASDAQ: BIDU  ) , which has been an occasional drag on Baidu's shares as well. And with Google set to report earnings Thursday after the bell, investors everywhere will have yet another opportunity to see just how badly mobile has weighed on Google's financial performance of late.

Google earnings: What investors should expect
Analysts are calling for a bit of a reversal of fortunes for Google in its upcoming report, a real surprise, since Google's revenue growth has handily outpaced its profit growth in the past several years, as the trend underpinning Google's profit margin issues has proved harder to shake than many realized.

Still, both Google and Baidu enjoy some of the most enviable economics in all of technology, even as they acclimate to their mobile futures. In the following video, tech and telecom specialist Andrew Tonner discusses Google's upcoming earnings in greater detail and makes his case for investors to stick with the likes of Google and Baidu as fantastic long-term growth opportunities for the decade ahead.

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Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out, and some early viewers are claiming its everyday impact could trump the iPod, iPhone, and the iPad. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early-in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!

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Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

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Andrew Tonner

Andrew Tonner is a tech specialist for The Motley Fool. He is a graduate of The University of Arizona with a degree in Finance.

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8/28/2015 4:00 PM
GOOG $630.38 Down -7.23 -1.13%
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