Google is helping the economy and hurting its stock. The company is hiring so many employees for projects outside its thriving search advertising business that its expenses are growing much faster than its revenue.
The strategy came into sharper focus in Google Inc.’s first-quarter earnings report released Thursday. Higher costs spooked investors who are already nervous about a new CEO who detests Wall Street’s fixation on short-term results.
Google has committed to hiring at least 6,200 workers this year, the most in its 13-year history. It added more than 1,900 people in the first quarter, a pace that would translate to more than 7,600 for the year. Google ended March with more than 26,300 workers, 28 percent higher than a year ago.
The push coincides with Google co-founder Larry Page’s return to his original job as CEO. Page, who ended Eric Schmidt’s decade-long tenure as CEO after the first quarter ended, has indicated he plans to keep investing in opportunities that may take years to pay off, even if that drags down results in the near term.
Source: Yahoo News