Some news that might be of interest to businesses in general. MSNBC and AP report the news.
Web search leader Google Inc. Thursday posted an industry-leading 110 percent rise in quarterly profits as the company dodged the slowing growth trend that has hurt rivals Yahoo and eBay.
There's something here to notice.
First off, the numbers are pretty amazing.
A slightly lower tax rate helped propel Google beyond analyst estimates. The second-quarter tax rate was 26 percent, below Google’s estimated rate of as much as 30 percent for the entire year.
30 percent is a remarkably large number. It also an important one.
Because the company’s tax rate was 27 percent during the first quarter, Google’s rates will rise during the next six months if the full-year rate turns out to be as high as 30 percent. A higher tax rate would slow the company’s earnings growth.
A law of business if there ever is one. It also brings up another point.
Bulging with $9.8 billion in cash through June, Google’s wallet can easily absorb the spending (for new employees).
So, for people that believe that businesses that make "obscene" profits, generally those profits don't go directly into the pockets of the chief executives. No matter what you read on anti-business blogs. That's not an absolute, but corporate greed is still the execption not the rule.
So, hope you got in early on the Google stock bandwagon!
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