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Are there Dark Clouds in Google’s Income Future?

It’s very essay to get excited about Google as the company of the future. After all, this is the company that is invested in humanoid-looking robots, robots that could do all sorts of crazy stuff. This is also a company that invested in flying cars and self-driving cars. Google has its finger in many pies. This company is never out of loss when it comes to big ideas. However, if you strip out all the hype and strip out all the buzz, deep down, Google is still an advertising company. At its core, Google is a company that takes information from all over the world from many different kinds of sources. Makes easy to search and then slaps ads on it. That’s it. That’s the value of proposition. It’s an advertising driven company. As a result if you want to take a look at the health of this company, you have to look at its numbers. On its face, the numbers look great.

Last quarter of 2013, Google made 16.86 billion dollars. This is a nice and healthy 13% improvement from the same period the previous year. Moreover, its the amount of available cash it has. This is like cold hard cash in the bank is 58.72 billion dollars. So far so good, right? However, if you could dig in deeper into its advertising revenues, you would notice that mobile revenue in the lucrative United States market went down. That’s a red flag. Why is this a red flag? Mobile is a huge revenue driver. You cannot lose out on mobile. Mobile is fast outstripping traditional computing as a means of experiencing the Internet. More and more people are using mobile devices. This is very troubling because mobile advertising is the wave of the future. Google lost 1 billion dollars in that arena. A lot of servers are saying that it lost that space to Facebook. Some critics are saying that Google is showing signs that it’s giving up on mobile. If you’ve ever looked at Google’s ads, they have this weird arrows. Those are designed for greater clicks from mobile. Well, it appears that those initiatives of making more money through its mobile ad presence is not panning out. At least, it resulted in a one billion-dollar downturn. So what’s the news? Well, its too early to throw in the towel yet regarding Google’s mobile ad business strategy. Still, it better get its act together soon because Facebook is held bent on making most if not all of its money from mobile ads.