Oct. 18 - Jeffrey Goldfarb talks to Breakingviews columnists about Google's strong earnings, Larry Page's impatience and the temptation of big acquisitions.
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These are really humming along at Google which produced amazing third quarter results. The stock has over a thousand dollars a share. Maybe a little boring. Acute allergy usually do well for Google the question is you know -- that's not what comes next and it seems like there's find that. Larry Page he has said he's not appear and other earnings call probably won't Pyrenees earnings calls that -- prior at this time. And he also said you know we spend -- money and it's created projects like you know like. Internet project in access for people Africa balloons helped sell cars are very researching long to activity. He's saying well you know actually. You should encourage us to spend more money on this stuff because we're having trouble spinning enough money on these kind of -- this is a bit of a luxury problem but also potential pitfall. -- probably since the minute giggle as this. Great quite productive skeptic and -- try and departments. You know these these states things that's difficult spent that much money in the -- takes the company hopeful though they'll. But apple has the same problem but at a much narrow area it's clear that way they. You know I will focus is clear I mean you have -- to a military engineers can go to -- that's change you can always get Lauren is evil fun stuff. That it's gonna. Unit gratification is by definition delayed its new stimulus money list expletive analyst profits -- you get a stop spending a lot of money on acquisitions every party -- it wants with with Motorola sort of clearest example of that today and really -- finished. Because the losses to ski team with a one bad side ultimately which talk a little about the results -- a little -- both agree on sales eighteen filter -- of 20% sales overall are twelve with a big questions that about. Fury you know a few people that the price for clicks for ads going down -- -- -- -- -- the price for -- went down 8% that been -- -- that 23% at that's it. You know combination and come and take an -- mean that they're getting more revenue. And that's and that's floating down the bottom line during the one polite. Is Motorola Motorola which has to be fair it is actually. Kind of a small. -- for the company because the other business just hoping at this point and Motorola it's. The shrinking by the by the date -- becoming smaller problem. The danger of course is that you know the company well you know the he acknowledged the call -- and all of it self driving cars you know. It will become reality it's not gonna happen overnight and take a very commercialized like they expect to. Let's just say -- -- I mean you know we we know acquisitions of the possibility of their positions as the red flag because that -- -- especially with a cultural differences all the rest. It is still somewhat early days it usually could still produce secure true hall piece of Hardaway handset and tablet -- From that acquisition but right now it's looking like it's it's it's a drain another huge -- do something but it drained it. You know I guess the question is other other big acquisitions and might do it. You know that that they can also be drains and certainly showed them to go to impose our will leave it there are we will see how patient to Google can be a -- back with more breaking views next week.
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