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Google reports huge profits surge as Yahoo declines
Google has reported a surge in profits of almost 70 per cent for the first quarter of 2007, prompting a 3.8 per cent share price rise.
Revenues were up by 63 per cent year-on-year to $3.66 billion. After subtracting advertising sales that the search company shares with its affiliates, revenue came in at $2.53 billion - up by two thirds from $1.53 billion last year.
Google's good news came soon after chief rival Yahoo posted disappointing earnings for the first quarter, which led to the latter's share price declining by a total of 15 per cent over two days.
This week was not a good one for Yahoo, all in all. Research from comScore also indicated that Google had retained its firm grip on just under half the search traffic in the US, but that Yahoo's share had dropped from 28.1 per cent to 27.5 per cent.
However, Yahoo has only just introduced its new improved internet advertising system, Panama, which analysts are expecting will allow it to close the gap with Google.
Search is big business - companies wanting to take advantage should use link building.
Google News posted on 20 April 2007
