Google’s share price falls despite revenue growth
Share price fell 5 per cent despite a rise in 2010 revenue.
Google recorded a 23 per cent rise in its revenue in the first-quarter of 2010 but whilst profits posted on Thursday were up $54m year-over-year, shares fell 5 per cent as some investors were disappointed that online advertising was not picking up as much pace as expected.
The search engine's annual revenue growth is not back to 40 per cent, which it recorded before the recession, but the latest numbers show a substantial increase from the depths of the downturn at the beginning of 2009. A seven per cent rise in average cost-per-click, which contributes to Google's sales, was also a key indictor for the quarter, according to market analysts.
Google also said it has increased its staff strength to 800 and will hire aggressively this year to focus on increasing revenues from internet advertising.