Liz Gannes

Recent Posts by Liz Gannes

Google Misses Second Quarter Earnings, as Motorola Starts Assembling Phones in Texas

MotorolaphonefactoryGoogle had earnings of $9.56 per share on net revenue of $11.1 billion in the second quarter, below analyst expectations of $10.80 per share on net revenue of $11.4 billion.

It’s a rare miss for the company but one that doesn’t have investors too alarmed, yet. The stock is down less than 1 percent to $910.68 in after-hours trading.

Consolidated revenue was $14.11 billion, or an increase of 19 percent from last year.

Some of the things investors care about, like the average cost per click, continue to be down slightly — in this case, 6 percent from last year and 2 percent from last quarter.

In a comment, Google CEO Larry Page said something similar to what he has said in the past: “The shift from one screen to multiple screens and mobility creates tremendous opportunity for Google. With more devices, more information, and more activity online than ever, the potential to improve people’s lives even more is immense.”

In fact, Google’s Motorola unit has started production on its upcoming Moto X superphone, having tweeted a picture from the Texas assembly line this afternoon.

However, the Motorola unit got rid of a lot of headcount in the quarter, which included layoffs and transferring its Home division to Arris. Motorola had 4,599 employees as of June 30, down from 15,152 as of March 31.

Stay tuned for the earnings call.

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Just as the atom bomb was the weapon that was supposed to render war obsolete, the Internet seems like capitalism’s ultimate feat of self-destructive genius, an economic doomsday device rendering it impossible for anyone to ever make a profit off anything again. It’s especially hopeless for those whose work is easily digitized and accessed free of charge.

— Author Tim Kreider on not getting paid for one’s work