How Can Google Reignite Revenue Growth?

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July 18 (Bloomberg) -- Braintree Payments CEO Bill Ready and Bloomberg's Jon Erlichman discuss Google earnings with Pimm Fox on Bloomberg Television's "Taking Stock." (Source: Bloomberg)

Are other guest.

What did google report?

The revenue for the first quarter was big, north of $11 billion.

This is an economy that continues to grow at -- a company that continues to grow at a strong rate.

However, the earnings per share came in below expectations.

That is one reason the stock is down after hours.

We noted that the cost per quake, which is a measure of what advertisers are paying every time you click on an ad, the percentage was down year over year.

It was explained in part in the conference call as the shift to mobil advertisements, some of which are not generating the same amount per click as the traditional desktop search.

One of the things google has been doing is shifting a lot of its clients' advertising campaigns to -- away from the traditional desktop campaign to the world of mobile.

In a lot of weight, google is seeing a lot of benefits from mobile.

And this might be a side story.

Google prices are up about 30% this year.

And the shares in after-hours are trading down four 0.5%. bill -- are down 4.5%. bill, our margins going to be affected by the mobile platform?

I think you're out huge threat for existing internet players that are trying to figure out how to monetize on mobile.

And you have new companies that are mobile first that are building great experiences.

It is a huge opportunity for people to build in a great mobile first experiences.

Does this mean there will be more deals, more acquisitions on the part of companies, such as google?

Particularly for google, i think there is a real commerce aspect.

We do not have as much realistic on the device and you're not going to.

You cannot show as many ads.

Demonstrating more effective is for that is probably the route you have to think about.

I know they're thinking of going to any commerce approach for things like google wallet and things like that.

I think that is how you demonstrate greater effectiveness on the mobile advice -- device.

Given that the android operating system is owned and run by google, but they're having trouble monetizing the on-line payments world.

Google might take issue with that.

The android business is one that a reference on their conference call as one of the champion businesses for them.

And one that they never would have known initially would become what it has.

Larry gage, the ceo of google, likes to take these earnings calls as an opportunity to talk big picture, the fact that this company will keep spending in a big way on things if things is important -- are important, which do not necessarily make sense today, but will make a lot of sense a few years from now.

He likes to use the word focus to make people, at least investors, are not overly concerned at what they're spending in their big areas.

Google is willing to spend now to continue to get it right.

And to your point, they're not getting something right just yet, and to keep figuring it out because there are more and more people on line than ever before.

Increased competition between the eyes and android and the phones that use that operating system.

Which is the preferred platform for users as well as developers right now?

I think there is a big -- a bit of a shift under way.

Ios, from a commerce perspective right now, two-thirds of commerce is on the ios.

But android is very quickly out shipping the android -- the iphone.

The reason you have more androids shipping that iphones, android devices tend to be lower and devices.

Over time, they also become primary computing devices.

75% of commerce on mobile is happening on ios.

This text has been automatically generated. It may not be 100% accurate.


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