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Google`s profit nearly triples

Google`s 2006 fourth quarter profits nearly tripled and surpassed analysts` expectations. The internet search giant reported Wednesday that it had made $1.03 billion, or $3.29 a share, during the last 3 months of 2006, as apposed to $372.2 million, or $1.22 a share, during the respective period in 2005. The company`s income rose by 67% to $3.21 billion, as apposed to the expected gain of 64%. The company nearly doubled its manpower during last year and now employs 10,674 employees.

According to Google`s CEO, Eric Schmidt, said: "To be growing this fast at this stage is phenomenal?I`m proud to be a part of the company." Yet, investors` initial reaction was less than enthusiastic. Google shares gained $7.18 before the reports were released, and closed on $501.50 a share, loosing nearly 3.5% in the after hours electronic trade. A number of analysts say they are unimpressed with Google`s reports saying the company enjoyed especially low tax rates this quarter, 24%, as apposed to 26% during the rest of the year.

"Everything was solid, but it wasn`t the type of blowout quarter Google has delivered in the past," said Martin Pyykkonen, an analyst at Global Crown Capital. Google`s advertising commissions took up a larger part of Google`s income in the fourth quarter, than partnerships with other websites. Google`s advertising commissions totalled at $976 million, or 81% of Google`s income from advertising, as apposed to 79% in last year`s third quarter.