Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Google Will Eat You Alive

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Once again, Google (Nasdaq: GOOG  ) has proved that it's the class of online search engines.

Big G delivered another strong quarter last night, capping off a year that proved to be far more challenging for its lesser competitors.

Quarterly revenue grew 17% to $6.7 billion. Putting this in its proper perspective, analysts expect Yahoo!'s (Nasdaq: YHOO  ) , AOL's (NYSE: AOL  ) , and parent IAC's (Nasdaq: IACI  ) year-over-year revenues to decrease during the same period when those companies report in the coming days.

Adjusted earnings rose 33% to $6.79 a share, blowing past Wall Street expectations of $6.50 a share. What can you say? Google is like my teen son playing Modern Warfare 2 -- it rarely misses its targets.

The report was encouraging in many other ways. Advertisers are willing to pay more per lead, since the number of paid clicks rose by only 13%. Google's AdSense sites also grew faster than Google-owned sites. (Trust me, that's a good thing -- it shows that Big G isn't alienating third-party publishers.)

The stock did initially sink on the news in after-hours trading last night. Expectations were high, and not just because the stock closed higher during yesterday's red-arrow market. I guess some folks were holding out the hope that Googleplex water fountains would begin spewing Dom Perignon, and that some Gmail techie would unearth the cure to male pattern baldness.

Google is as Google does -- and that's a good thing.

It may never unseat Baidu (Nasdaq: BIDU  ) in China, or pose a legitimate threat to Microsoft (Nasdaq: MSFT  ) in application software. Android may only wind up being a niche smartphone operating system. None of that matters, as long as it remains the global champ in paid search.

It really hasn't been a surprise to see the company do so well, even while display advertising cheerleaders Yahoo! and AOL are backpedaling. There is really no better ad platform than Google AdWords for canvassing the Internet with relevant text ads.

We'll be back to do this all again in three months, but the story is unlikely to change. Google will keep growing faster than its peers, and faster than what analysts are expecting.

What do you think of Google's report last night? Share your thoughts in the comment box below.

Microsoft is a Motley Fool Inside Value selection. Baidu and Google are Motley Fool Rule Breakers recommendations. Motley Fool Options has recommended a diagonal call position on Microsoft. Try any of our Foolish newsletter services free for 30 days.

Longtime Fool contributor Rick Munarriz still uses Google a lot in his daily life. He does not own shares in any of the companies in this story. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy.

Read/Post Comments (1) | Recommend This Article (5)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On January 22, 2010, at 1:06 PM, langco1 wrote:

    google is over a year past its peak and now is slowly declining.for all the talk in reality google was nothing more than a online phone book..

Add your comment.

Compare Brokers

Fool Disclosure

Sponsored Links

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!

DocumentId: 1091216, ~/Articles/ArticleHandler.aspx, 10/27/2016 5:13:16 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 7 hours ago Sponsored by:
DOW 18,199.33 30.06 0.17%
S&P 500 2,139.43 -3.73 -0.17%
NASD 5,250.27 -33.13 -0.63%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/26/2016 4:00 PM
GOOGL $822.10 Down -6.45 -0.78%
Alphabet (A shares… CAPS Rating: *****
BIDU $172.82 Down -3.86 -2.18%
Baidu CAPS Rating: *****
IAC $66.26 Down -0.88 -1.31%
IAC/InterActiveCor… CAPS Rating: *****
MSFT $60.63 Down -0.36 -0.59%
Microsoft CAPS Rating: ****
YHOO $42.08 Down -0.47 -1.10%
Yahoo CAPS Rating: **