Google's increasing profit disappoints
For the last quarter of 2007, Google's profit increased $608 million to $1.21 billion. But yet many analysts are disappointed, expecting Google's profit to increase by even more.
There is something crazy in a market where a relatively young company makes over a billion dollars in profit in 3 months, which is an increase of over 100% and totally dominates its market and analysts are still disappointed. It is no wonder that stock markets get themselves into horrible crashes from time to time.
While pondering the profit of Google, I thought I would compare it to the UK's biggest company, Shell, who announced its 2007 profit in the last few days. Google's total profit for 2007 was $4.2 billion. Quite impressive. But compare that to Shell, which recorded a profit of $31.3 billion for the same period. That certainly puts it into perspective. Perhaps it also indicates that there is a lot of potential left in the business of the internet. I'm sure the day will come when the Internet's most dominant company can match the profit of the UK's biggest company.