Google is learning that search dominance and attempts to wedge into the social-networking party come with some expenses.
It's no small secret that Google intends to spend whatever it takes to make a splash in social networking against rival Facebook and that it has taken on some added legal costs as it goes up against multiple fronts -- the FTC and the EU -- to defend its dominance in search.
Now, financial analyst Hudson Square Research wants to quantify those costs. The researcher reports in a note, titled "The Cost of Being Google Rises", that the firm is lowering its earnings forecast for the search giant.
"Driven by our assumption that Google's operating costs for advertising, R&D, and operations in general and legal in particular are rising we are lowering our 2011 and 2012 estimates," Hudson analyst Rory Maher noted.
Hudson says that costs are on the rise from various product moves including in display advertising, mobile, cloud computing, software and social areas.
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Source: usatoday.com
By: Scott Martin
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