By Chris Telfer 2 years ago at 03:03
Shares in search giant Google have today come under pressure from a significant rise in the companies overheads, working to overshadow and skew the first set of results after co-founder Larry Page re-took his position as CEO.
The most significant cause of the increase, and one of the main reasons Wall Street is being cautious of Google, is the company’s commitment to employing a further 6,200 new staff this year, setting the record for the largest round of hiring in the firm’s 13-year history.
Larry Page replaced long-time CEO Eric Schmidt earlier this month, just in time to release the company’s figures for Q1, which totalled to a 17% rise in profits to 2.3 billion dollars. You may be thinking that surely there is nothing to worry about, however, savvy investors noted that expenses were growing at a fast rate than profits, resulting in a drop of 5% in the value of their shares during after-hours trading.
Mr Page, in an attempt to deflect investors from the figures and draw their attention to Google’s wider, long-term strategy, said "It's clear that our past investments have been crucial to our success today - which is why we continue to invest for the long term."