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GOOG Earnings: After Market No Likey

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GOOG is not doing well after releasing earnings. AP is calling it an “earnings miss.”

Google reported adjusted earnings of $1.54 per share, well below Wall Street’s forecast for $1.76 per share, even though it brought in higher revenue than expected.

Google shares were halted for the early part of the aftermarket session, then dropped significantly when trading resumed. Shares were down $68.17, or 15.8 percent, trading at $364.49 on the INET electronic exchange, from their close on the Nasdaq at $432.66.

From Google’s release:

“We are very pleased with our results for the fourth quarter as we

achieved excellent performance across our businesses,” said Eric

Schmidt, CEO of Google. “We generated significant revenue growth in

our core search and advertising business, driven by continued strength

in traffic and monetization. We will continue to invest significantly

as we develop innovative new products and as we extend our core

technologies to new user access points and to different channels.”

Q4 Financial Summary

Google reported revenues of $1.919 billion for the quarter ended

December 31, 2005, an increase of 86% compared to the fourth quarter of

2004 and an increase of 22% compared to the third quarter of 2005.

Google reports its revenues, consistent with GAAP, on a gross basis

without deducting traffic acquisition costs, or TAC. In the fourth

quarter, TAC totaled $629 million, or 33% percent of advertising


Huh. I am not a stock picker, but I guess the fellow from Yahoo is feeling pretty smart about now.

Did Anyone Notice…

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"Did anyone else notice that installing Google's new toolbar automatically, and without asking or noting, removed their Alexa toolbar?…" Read More Read More

New Site Feature

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Hey Searchbloggers – Thanks to FM’s team of coders, I’ve installed a new feature, one I have always wanted to have. I’m calling it “Recent Comment Spotlight.” It’s up there on the left at the top. I read every single comment you all put on the site (including the ones left by knuckleheaded spammers,) and I love em all – and often, they get lost or overlooked. So to highlight one from time to time, I made the Spotlight section. Right now I’m highlighting a comment about MSFT and data privacy, but it’ll change pretty frequently.

More G Rumors: Napster

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NypostnapsterFrom BizWeek:

Shares of Napster Inc. skyrocketed in premarket electronic trading Tuesday, as investors responded to a report that the online music store is being eyed by Google Inc.

The Internet search giant, which is due to report fouorth-quarter results after the bell Tuesday, is considering an “extensive alliance” with, or possibly a takeover of, Napster, according to a published report.

The New York Post, citing sources within the music industry, said Google wants to “align with Napster’ in lieu of creating its own music store.

This strikes me as fantasy. Why does Google need to buy Napster? The company could build a great music store by itself. Or perhaps….it’s buying Napster’s relationships….Reuters story. Original Post story.(reg required).

Update: Google is playing this down. (Thanks, OB)

Google Going P2P?

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Spotted on Digg: The URL resolves to Google ( also resolves to Google, though to a non working page.) Odd, in that ShareLive used to be a file sharing site. From the Internet Archive: August 2002, June 2004, (something called oZone), Feb 2005 (back to ShareLive). Nothing after March of 2005. It apparently shutdown in May of 2005, due to lack of funding (and probably legal issues?). Could Google be getting ready to launch its P2P service? (Thanks, Andreas)

We Asked Microsoft…

By - January 30, 2006

We asked Microsoft last week at Search Champs to show us the data, even if under NDA, and they informed us they couldn't….. Read More Read More

Grokking Nexidia

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Nexidia-1A while back I had the opportunity to speak with the folks behind Nexidia, a company that takes a unique approach to solving the audio (and by extension video) search problem. Gary has briefly grokked Nexidia in the past, but this was my first chance to dig in and see what they have to offer. In short, it’s pretty cool, and the implications, should the company scale and get access to large datasets (ie become a consumer property or inform one), are significant.

I spoke with Nexidia’s SVP/Media, Drew Lanham. He told me Nexidia is already a profitable company, due in large part to its call center business. For that segment of the market, Nexidia provides audio mining technology that allows companies to identify patterns in customer contact, for example, and design better customer interactions (are you listening, Dell?).

Most stuff I’ve seen about audio and video search uses either text (ie closed caption) or tagging and metadata as a solution. So how does Nexidia work? In short, the company’s technology reduces speech to phonemes, the most basic unit of language, and uses those base units in much the same way that a text engine uses words. This approach is not novel, but Nexidia has apparently figured out a tack that not only works, it also scales, which is critical to the problem at hand. From Drew’s follow up notes to me:

” For example, if you assumed daily additions of 10,000 hours, a taxonomy of 10,000 words, and 50 dual processor boxes, it would take about 8.7 hours to index (produce XML for location of word, file name, quality of phonetic score, frequency of word, language, etc. to be combined with other relevant metadata). I find the 10K hours relevant because if you assume CNN broadcasts 16 hours of content per day, then it would be cheap to index all audio and video created across 600+ radio and television stations (a rough guess of all the spoken word content on a daily basis created in North America). As you know, 50 boxes is trivial.”

Google showed us that when you push to a new level in scale, all sorts of previously unimagined applications can be found. Nexidia is already being used in call center applications, as I mentioned, and counts the “homeland security” industry as a client as well. But what gets me excited is the potential in media search, which is Drew’s focus as well. Nexidia turns any search query (a text input) into a phonetic code, which is then matched against a database of audio and video files. The potential here is rather large – coupled with a smart query UI, one can imagine a new approach to finding relevant data inside non-textual corpuses. Imagine – search all podcasts for a mention of “Google China” for example. Or all newscasts for coverage of “Iraq War Oil”. Should audio/video search become this easy, advertising models open up, as do commerce opportunities (show me every movie where “rosebud” is spoken…). And don’t get me started about what might happen if you mix Nexidia with Skype….

For now, Nexidia plans to work as a back end supplier to consumer sites, but I wouldn’t be surprised if they decided to go it alone and try to become a consumer facing engine that crawled the web as well. I asked Drew about that, and he said only that the company wasn’t going to take that option off the table. What I saw was impressive, though as faithful readers know, I am no technical expert. Regardless, this seems one to watch in 2006….

NYT v. Blogs, Prelim Report

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From Kottke:

In 2002, Dave Winer of Scripting News and Martin Nisenholtz of the New York Times made a Long Bet about the authority of weblogs versus that of NY Times in Google:

In a Google search of five keywords or phrases representing the top five news stories of 2007, weblogs will rank higher than the New York Times’ Web site.

I decided to see how well each side is doing by checking the results for the top news stories of 2005….

…So how did the NY Times fare against blogs? Not very well. For eight top news stories of 2005, blogs were listed in Google search results before the Times six times, the Times only twice.

MSN and Kanoodle, Well…Kanoodle

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Kanoodle is pleased to report it has snagged MSN Spaces as a text link ads partner. What this brings up for me is the question “Yeah, but for how long?” I’ve asked MSN before about its intentions to get into the syndication space (ie, to do YPN or AdSense). This deal seems to indicate it’s at least a year away.