Google’s (NASDAQ: GOOG) stock rose all week, showing positive signs with the upcoming releasing of their Q2 earnings report after the market closes this Thursday. It is now clear investors are highly optimistic about the direction Google is heading towards, with the stock seeing strong and steady increase all of July. Within the past two weeks, shares of Google have seen solid growth from 524.10 to closing at 561.10 this Tuesday afternoon.
With the new addition of Chief Financial Officer Ruth Porat, spending and hiring curbs are on the rise. Data shows that in the first quarter this year, Google hired 1,819 employees, while hiring an average of 2,435 employees per quarter during 2013. As Google continues to grow, we are seeing that they are beginning the process of leaning its structure by decreasing expenditure in areas which they can afford – future spending as well as prospective employees.
Goldman Sachs (NYSE: GS) analysts are uncertain whether the investments that Google is making are the right investments, and whether the spending is efficient is also a concern. However, Google has a history of missing analyst estimates, with history showing that share performance does not always correlate to results.
Google owns a vastly diverse portfolio of projects. However, none are labeled as their primary area for growth thus far. At their annual developer conference Google I/O 2015, their Senior Vice President Sundar Pichai revealed the project direction Google is heading towards for the upcoming year. A few notable projects are: the new Android software Android M, their Virtual Reality headset Google Cardboard, Android Pay, Android TV, Google’s self-automated cars – all examples of Google’s advancements in machine learning. All of these projects solves big problems in user’s lives, and does so at scale for everyone. Will investors continue to invest into Google as it heads into this direction?
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