Investors expect a lot from Google. That was especially evident on Thursday when Google’s shares dropped handily even though the company posted their highest quarterly net income in their history.
Prior to the release of Google’s second quarter report, Google shares were at around $442. Once the report became public, Google shares dropped to around $428 rather quickly.
Google’s net income for the second quarter of 2009 was approximately $1.5 billion. Compared to the second quarter of 2008, that number represents an almost 20% increase.
The number that investors didn’t like was the company’s revenue growth. With revenue of $5.52 billion in the …read more

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Today, Citigroup (Ticker: C) shocked Wall Street by reporting first quarter net income of $1.59 billion. With better than expected results, why did the shares close 9 percent?
Perhaps, because Citi’s owners didn’t really profit.
In situations like this it is good to know the basics of financial statements.
The income statement tracks a company’s revenues and expenses for a certain period of time. Net income is often referred to as “the bottom line” because it is the bottom line on a company’s income statement.
If revenues are greater than expenses, then the company has turned a profit and if revenues are less than expenses, then the …read more

One of the most effective ways of stimulating sales is by injecting a credit program into your sales program (i.e., set up an accounts receivable). If / when your credit program / accounts receivable results in a growth in Revenues as expected, your Cost of Goods will also grow in step with your Revenues. Make sure that your Cost of Goods per unit stays the same (of course, the absolute / total amount will grow). With your Cost of Goods per unit kept at the same level (and with your accounts receivable not exceeding 25% of your …read more