Paid clicks were up 25% YoY and cost per click was down 6% YoY and flat QoQ. To see this metric flat QoQ was another great indicator.
Google sites revenues were up 23% YoY and came in at $10.94 BB. Network revenues were up 7% YoY coming in at $3.42 BB. Other Revenues came in at 1.6 BB, up 53% YoY.
It seems like investors are becoming comfortable with Google's long term strategies and investments as the stock has been strong even with an earnings miss. All the drama surrounding the Nest recall has also appeared to have had minimal impacts on Google's results. Google may be leading the way towards technological advances worldwide and can easily be considered undervalued at these levels where revenue growth is consistently around 20% each quarter. Google has been swallowing various other companies with relatively minimal effects on the financial results. Of course expenses have been trending up but the company has proven that it can afford to invest for the future today. With growing ad revenues and the various other avenues for growth becoming available, we recommend a hold on the company with a price target around 700.