Google Beats Earnings As Eric Schmidt Hands Over CEO Spot To Larry Page, Stock Goes Berserk In After Hours Trading

Tyler Durden's picture

Google trading in afterhours is like a ritalin-fueled, amphetamine-infused roller coaster ride. After opening $25 higher, the stock subsequently turned red. And while results were great, the executive shake up which sees Eric Schmidt becoming Chairman and Larry Page CEO is spooking the stock. Perhaps that explains why GOOG has been one of the biggest insider sellers in past months...

Earnings details:

  • Q4 revenue USD 8.44bln vs. Exp. USD 6.06bln
  • Q4 paid clicks rose 18% vs. year ago
  • Q4 revenue ex-tac USD 6.37bln
  • Q4 traffic acquisition costs USD 2.07bln
  • Q4 average cost-per-click rose 5% vs. year ago
  • Q4 sites revenue USD 5.67bln
  • Q4 international revenue USD 4.38bln
  • Q4 network revenue USD 2.50bln
  • Larry Page to take charge of day to day operations as CEO

And here is the Larry Schmidt explanation for why he is leaving:

When I joined Google in 2001 I never imagined—even in my wildest
dreams—that we would get as far, as fast as we have today. Search has
quite literally changed people’s lives—increasing the collective sum of
the world’s knowledge and revolutionizing advertising in the process.
And our emerging businesses—display, Android, YouTube and Chrome—are on
fire. Of course, like any successful organization we’ve had our fair
share of good luck, but the entire team—now over 24,000 Googlers
globally—deserves most of the credit.

And as our results today show, the outlook is bright.
But as Google has grown, managing the business has become more
complicated. So Larry, Sergey and I have been talking for a long time
about how best to simplify our management structure and speed up
decision making—and over the holidays we decided now was the right
moment to make some changes to the way we are structured.

For the
last 10 years, we have all been equally involved in making decisions.
This triumvirate approach has real benefits in terms of shared wisdom,
and we will continue to discuss the big decisions among the three of us.
But we have also agreed to clarify our individual roles so there’s
clear responsibility and accountability at the top of the company.

will now lead product development and technology strategy, his greatest
strengths, and starting from April 4 he will take charge of our
day-to-day operations as Google’s Chief Executive Officer. In this new
role I know he will merge Google’s technology and business vision
brilliantly. I am enormously proud of my last decade as CEO, and I am
certain that the next 10 years under Larry will be even better! Larry,
in my clear opinion, is ready to lead.

Sergey has decided to
devote his time and energy to strategic projects, in particular working
on new products. His title will be Co-Founder. He’s an innovator and
entrepreneur to the core, and this role suits him perfectly.

Executive Chairman, I will focus wherever I can add the greatest value:
externally, on the deals, partnerships, customers and broader business
relationships, government outreach and technology thought leadership
that are increasingly important given Google’s global reach; and
internally as an advisor to Larry and Sergey.

We are confident
that this focus will serve Google and our users well in the future.
Larry, Sergey and I have worked exceptionally closely together for over a
decade—and we anticipate working together for a long time to come. As
friends, co-workers and computer scientists we have a lot in common,
most important of all a profound belief in the potential for technology
to make the world a better place. We love Google—our people, our
products and most of all the opportunity we have to improve the lives of
millions of people around the world.