Google Paid A High Price To Support The Strong Growth Of Performance

Although Google maintained the strong growth momentum in the third-quarter results

, Google also paid a high price to support the rapid development. The new head Larry Page is still facing many challenges in the future.

Google has recently increased rapidly, but the cost is also high. This situation may to some extent inhibit the investors' enthusiasm for Google's stock. For them, good news is that Google seems to have found its new way to support the growth of performance t.

A bright spot is Google's mobile advertising is growing rapidly. Mobile services should give Google a contribution of approximately $ 2.5 billion in revenue this year. A year ago it was only $ 1 billion. This shows that the Google's huge investment on Android mobile operating system and the relevant mobile advertising is gaining a huge return. View of the demand for smart phones exploded, the mobile advertising market has great potential.

Another concern of business is social service Google +. Although only it is released a few months ago, the users have reached 40 million. The analysts say that however, Google faces enormous challenges on how to ensure user activity. Although many people registered to use the Google + service, because of too few friends on the platform, they slowly disappeared. If the users of Google + can still continue the rapid growth, then the user viscosity of the service may be raised.

The analysts say that at the same time, Google's core search advertising business continued a rapid growth, . The business revenue is still the main part of Google's revenue in this year. According to the analyst, integrated all the above factor, Google's organic revenue growth rate is expected to remain at an alarming rate of 28%.

But what the investors need to guard against is that Google is paying the high price for this rapid growth. The battle for talents in Silicon Valley is beginning to intensify. Google is currently working with Facebook and other Internet upstarts in the battling for talents. The investment in human resources has gone up. In the last quarter, the total number of Google's employees increased by nearly 2600 people, 28 new employees per day.

So, despite continued rapid growth momentum, but Google's operating margin fell from 46% to 41%. Therefore, in view of the complexity of these issues, in order to prove I am afraid that Page still has a long way to go.

by: Amanda Xia

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