Google hits $50 billion in revenue

Internet giant still has immense potential

Mike King

Mike King is a Fool.com.au Investment Analyst and Writer. He caught the investing bug more than a decade ago, at a time when the U.S. had invaded Iraq and fear reigned in the markets. His initial success as the markets took off encouraged his passion and thirst for knowledge. With 13 years behind him at one of Australia's largest domestic banks, Mike's passion for stocks led him to join a boutique funds management firm, where he stayed for four years. A seven-year stint in equity research at one of the largest investment banks in the world followed that, giving Mike a thirst to pursue his passion further. Mike holds a Diploma in Applied Finance and Investment and a Graduate Certificate in Financial Planning. His passion is to help retail investors invest better, and that passion was one of his primary reasons for joining The Motley Fool Australia in late 2011. Mike has written thousands of articles since joining, including for Fairfax Media, Yahoo!7, Ninemsn and has also appeared on ABC's The Business. You can see all of Mikes' holdings here

Published January 23, 2013 1:06 pm AEDT

Internet titan, Google earned more than US$50 billion in revenues last year. No wonder the word 'Google' is now a 'verb'.

And not a bad achievement for a company just 15 years young, said co-founder and chief executive Larry Page.

For the full year, Google reported a net profit of US$10.7 billion, with revenues in the fourth quarter jumping by 36% over the previous year, partly helped by the acquisition of Motorola Mobility.

Following the release of earnings, Google shares jumped more than 3.5% to more than US$730 per share. The company dominates the US online advertising market, with market tracker, eMarketer estimating that 41% of digital ad revenue in the US goes to Google.

Mr Page said the group had ended 2012 with a strong quarter. "In today's multi-screen world we face tremendous opportunities as a technology company focused on user benefit," adding "It's an incredibly exciting time to be at Google".

With the world's number one internet search engine, YouTube, its advertising market domination, a market leading position with the Android mobile device platform, its expansion into hardware, social networking, cloud infrastructure, and Google Play, Android's equivalent of Apple's iTunes, Google has its fingers in many pies. Many of which reinforce its strengths and brand, which brings in more users and revenues.

As the gateway to the internet, Google has a huge competitive advantage to realise a lot of synergies by introducing new business lines. Over the long run, the company has immense upside potential.

In the market for high yielding ASX shares? Get three "Rock-Solid Dividend Stocks" in our special FREE report. Click here now to find out the names, stock symbols, and full research for our three favourite income ideas, all completely free!

More reading

The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. Motley Fool writer/analyst Mike King doesn't own shares in any companies mentioned.

Automatic Renewal

By taking up this offer, you will also be enrolled in our auto-renewal program, which is our way of making your ongoing subscription easier by ensuring uninterrupted service. Don't worry, though – you're not locked in, and can cancel your auto-renewal at any time before each 'anniversary' date without question or penalty.