Huge expenses gulp Google's Q1 revenues

As spotlight is on Google’s co-founder Larry Page, the search engine reported decent but uninspiring quarterly revenues. It has been reported that Google's first-quarter earnings has missed the analyst's projections and has witnessed high expenses. Sources informed, that Google’s commitment to employ at least 6,200 workers has become a cause of worry for the investors as this would result in more expenditure. Reportedly, shares have dropped more than 5%. However, the search engine has hit the revenue of nearly $8.6 billion; a 27 percent increase from last year. But, expenses are growing faster than the revenues, stated sources. Insiders revealed that the company hired 1,916 employees and expects to hire more than 26,300 workers by the end March. In addition, a 10 percent raise to the employees in the beginning of year has further resulted in rising costs. Google has used $890 million on data centers and other capital projects in the quarter which is three times higher than the last year spending. Let’s hope amidst the 27% revenue growth, Page don’t overlook the high capital expenditures by Google.