Google’s Profit Declines To $2.8 Billion

Google's third-quarter earnings have declined as the search giant recruited almost 3,000 more employees. Google’s profit declined to $2.8 billion against $2.97 billion during the same quarter last year.

Google's stocks decreased by $12.92 (2.4%) to $524 in extended trading after the results were announced.

Google Inc’s CEO Larry Page believes that some short-term gains can be sacrificed in order to invest in long-term projects that will pay off in the future. He defends his strategy by saying, “Google might not have ever developed its market-leading Android mobile software and Chrome Web browser if the company hadn't gone out on a limb.”

Some of the innovations that Google is working on include Internet-connected eyewear, Internet-beaming balloons, a fleet of drones, driverless cars and robots.

“The trend lines are okay, but you are slowing—growth certainly is slowing,” said Ben Schachter, an analyst at Macquarie Securities USA Inc. “They’re spending a lot to get the talent that they have. What needs to happen is you need to start to seeing some of the non-traditional areas contribute more to Google results,” he added.