MediaFile

Tech wrap: Google’s spending overshadows revenue growth

April 15, 2011

Google co-founder Larry Page in a file photo. REUTERS/Rick WilkingGoogle’s stunning 54 percent spending surge spooked investors already worried its new CEO Larry Page may take his eye off the bottom line to chase revenue growth, driving its shares more than 5 percent lower. Investors zeroed in on the stunning surge in expenses to $2.84 billion, which dwarfed a 29 percent jump in net revenue and reflected a record hiring spree, company-wide salary raises, and splurging on everything from marketing to technology. “If the expenses are targeted and result in future revenue streams, then good for Larry. If not, that results in an undisciplined spending approach”, said Colin Gillis, analyst at BGC Partners.

RIM’s PlayBook tablet bombed with influential technology reviewers calling the new iPad competitor a rushed job that won’t even provide RIM’s vaunted email service unless it’s hooked up to a BlackBerry. “RIM has just shipped a BlackBerry product that cannot do email. It must be skating season in hell,” New York Times’s David Pogue wrote. Even though the odd system on the PlayBook, aimed at pleasing security-concerned corporate customers, “is a neat technical feat, it makes the PlayBook a companion to a BlackBerry phone rather than a fully independent device,” wrote The Wall Street Journal’s Walter Mossberg.

Suppliers to Apple began production of white iPhones after a delay of almost 10 months, pointing to a launch date of within a month, two people familiar with the situation said.

A series of secret diplomatic cables as well as interviews with experts suggest that China has leaped ahead of U.S. in cyber-espionage, even though it’s difficult to ascertain the true extent of U.S.  capabilities and activities, writes Brian Grow and Mark Hosenball.

Post Your Comment

We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/