Google Does Well, Still Disappoints Wall Street

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google_recruiting_small.jpgADOTAS – Geez, watching Wall Street action gives me childhood flashbacks of trying to impress my father. Google’s revenue was up 24% year over year in the second quarter, but still analysts were disappointed and the company’s stock dipped about 4% (around $20) in extended trading on Thursday.

Google reps could be heard sniffling on the conference call and muttering, “Nothing we do is good enough for you people… We’re like the most successful Internet company but… Man…”

Second quarter revenue came in at $6.82 billion compared to second-quarter 2009’s $5.52 billion, with owned sites taking credit for $4.5 billion (66%) and AdSense partners accounting for $2.1 billion (30%). Net income was up $1.84 billion from $1.48 billion the prior year. Revenue-generating clicks popped up 15% while the average price per click rose 4%.

But apparently that wasn’t robust enough as analysts were wary about Google’s expanding payroll — 2,000 new employees this year, 1,200 alone in the second quarter — and the fact that one third of its income comes from Europe, where fears of the euro crashing are higher than ever.

They also couldn’t have been pleased with Google’s announcement that it is going to borrow $3 billion, going into debt for the first time since it became a public company. Even though the company has a reported $30 billion in cash, apparently the board believes the return on investment will be higher than the loan cost.

But Google has display dreams that it is determined to make a reality, and the quarter’s good showing bolstered their resolve. The company has inked a display advertising agreement with Omnicom Media Group (OMG), in which Google will assist OMG in building a “trading desk” to facilitate ad buying through the DoubleClick Ad Exchange.

All OMG has to do on its side is buy millions of dollars worth of display ads for its clients through Google over the next two years. Hey, it was already using the Ad Exchange with its own technology, and with this deal Google is also giving them some sweet analytics.

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