Rising costs and shrinking margins at Google (GOOG) won't help investors' confidence, especially given the recent slump in tech stocks. Although its net revenue climbed over a fifth to $12.2bn year-on-year last quarter, its capital spending nearly doubled to $2.4bn as it invested in the infrastructure that powers its search and cloud services.
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Moreover, operating expenses jumped nearly a third to $5.3bn as it entered several new markets, and management expects them to rise further. Google is already developing driverless cars and computerised glasses, and recently bought smart-thermostat maker Nest for $3.2bn, bolstering its presence in the burgeoning 'Internet of Things'.
