Google Inc (NASDAQ:GOOGL)’s Q2 results were mostly above expectations except the ad revenue. Investors were expecting it to take a hit, however the performance in other areas saved the day for the company.
Jay Srivatsa, Managing Director at Chardan Capital Markets, was on CNBC recently and he discussed about the Q2 results of Google Inc (NASDAQ:GOOGL). He was bullish on the stock and said that the execution of plans was mostly good which helped the company to raise the revenue across all areas of business.
“Across the board revenue is up and if you peel the layer of the onion, revenue from the Google sites as well as the networking sites and all other revenue, they are all up” Srivatsa said.
Google Inc (NASDAQ:GOOGL) is getting into a lot of stuff other than searching engine business and due to all that its revenue is expected to cross the $1 trillion mark. Srivatsa said that the mobile search business is just getting started and the company has a strong base here with almost 90% of the market share in Android space.
He agreed that the cost per click has been declining, however he thinks that an investor should look for the aggregate value of the business rather than cost per single click because the defines the revenue and the aggregate revenue was up by around 23%.
Srivatsa spoke about the enhanced campaign by Google Inc (NASDAQ:GOOGL) and said that though the cost per click is going down, such campaigns help the overall revenue and he thinks that there wont be any change in the revenue model.
“I think the biggest challenge for the company, for Google is really to figure out a way to move the users and the enterprises to the network, meaning to the cloud services.” Srivatsa stated about the way forward for Google Inc (NASDAQ:GOOGL).
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