Google profit short of forecasts
Google Inc.’s second-quarter profit rose 24 percent but missed analysts’ target as higher expenses and the fallout from the European debt crisis dragged down the Web giant.
The letdown announced stemmed from Google’s expanding payroll and a run-up in the U.S. dollar that has been driven by fears that the euro will crumble if governments in Greece, Spain, Portugal and Italy default on their perilously high debts. The worries hurt Google because about a third of the company’s revenue comes from Europe, and customer payments made with the euro translated into fewer dollars than a year ago.
Google is also spending more to maintain its commanding lead in Internet search while it also tries to diversify by developing products in other promising niches such as online video and mobile devices. To help achieve its goals, the company added nearly 1,200 employees in the second quarter, ending June with more than 21,800 workers.