Google Declines as Research, Marketing Crimp Profit
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Google Inc. dropped the most in three months in Nasdaq trading after reporting second-quarter profit yesterday that missed estimates, weighed down by a surge in spending.
Google, grappling with slowing growth for its traditional search-based ads, has boosted spending on acquisitions and staff to tackle new markets, including mobile marketing and display advertising. The company’s expenses climbed 22 percent to $4.46 billion in the period, a steeper gain than the 18 percent rise in the first quarter. The trend marks a shift from Google’s belt-tightening regimen during the recession, said Andy Miedler, a St. Louis-based analyst for Edward Jones.